The shifts in procurement every SMB should be across this week
- Sorcha McGee
- Nov 20
- 2 min read
The Federal Government’s updated Commonwealth Procurement Rules come into effect this week, and they’re great news for Small and Medium Businesses (SMBs). The changes signal that the government wants more Australian businesses and SMBs in the supply chain and more diversity in the marketplace.
If you’re an SMB selling to government already, or you’re looking at tenders for the first time, now is the moment to take stock.
A new approach to small procurements
The procurement threshold (the dollar value that determines which set of rules apply to a procurement) has been increased from $80,000 to $125,000 for everything except for construction. This is the first increase in 20 years.
In simple terms, the changes for procurements under this threshold include:
Only Australian and New Zealand businesses are to be invited to tender for non-panel procurements
For some panels and standing offers, only Australian and New Zealand SMBs are to be invited.
As well as overtly prioritising Australian SMBs, these changes mean government officials can be faster, simpler sourcing methods which are more accessible to SMBs with less administrative bandwidth.
Stronger SMB targets
The Government has also doubled down on its commitments to SMBs:
At least 25% of contracts by value must go to SMBs for contracts up to $1 billion.
At least 40% of contracts by value must go to SMBs for contracts up to $20 million.
These targets open real opportunity for proactive businesses.
More visibility for women-owned and Indigenous-owned businesses
The updated rules also increase reporting on contracts awarded to women-owned and Indigenous-owned businesses. This signals an expectation that agencies broaden their supplier mix and remove unnecessary barriers.
For eligible businesses, your ownership is now a strategic advantage. It’s easier for buyers to identify you, justify your inclusion, and demonstrate their own progress.
You’ll be able to self-identify on the procurement portal
The Government is rolling out a new Supplier Portal where suppliers can self-identify as:
an SMB
women-owned
Indigenous-owned.
It’s a progressive rollout, with panel suppliers to be onboarded by June next year, before it is then opened up to the wider market. With the new rules in effect immediately, it means it is really important that in the meantime you have text on your website to raise awareness of your business’ identifiers!
What this all means for SMBs right now
These changes are not minor. They are an enormous opportunity for Australian SMBs. But opportunity doesn’t automatically convert to outcomes.
Success now rests on how well you articulate capability, structure your operations, and position your business as a partner who delivers.
How Implement can help
This is where we work alongside you. We are strategy consultant experts from the world of large corporates, bringing right-sized consulting to SMBs like you. We’re passionate about the ‘real’ small businesses of Australia and the people that run them.
If your goal is to win more Government work, now is the time to make sure your business is easy to understand, easy to engage, and ready to deliver.
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