Procurement target for small and medium enterprises

The Queensland Government’s Buy Queensland approach makes Queensland jobs the first priority and is increasing opportunities for Queensland SMEs to supply to the government.

From 1 July 2020, all agencies subject to the Queensland Procurement Policy (QPP) must contribute to a collective 25% target of government procurement spend by value from Queensland small and medium enterprises (SMEs) —businesses employing less than 200 people.

The target will increase to 30% by 30 June 2022.

Why we’re doing this

The target initiative, led by the Department of Employment, Small Business and Training, delivers on the action in the Queensland Small Business Procurement Commitment – Action Statement, to establish a measurable target to drive an increase in small business participation in procurement activities across government.

We recognise that SMEs are vital to Queensland’s economy, regional prosperity and job creation during the recovery phase following COVID-19. Their size makes them particularly vulnerable to the disruption caused by COVID-19.

This procurement target aims to increase government spending with SMEs, building confidence in the sector and creating more local jobs, business growth, innovation, competition and capability to access new markets.

How will we achieve the target?

There are 6 major categories of procurement. Our category councils, which oversee strategy for their respective procurement category, are working on measures to achieve the target.

Each category council strategy will outline measures to achieve the target by 1 October 2020, including a mix of:

• incorporating SME spend targets for their category and subcategories
• reserving certain government procurement contracts for SMEs only (‘set-asides’)
• inviting at least one SME to quote or tender for new procurement valued at $250,000 or less
• delivering market development initiatives for SMEs to grow their capability and competitiveness.

More information

• Read the small and medium enterprise procurement guide.
• Read about COVID–19: Supporting the recovery of small and medium enterprises (PDF, 312.11 KB).
• Find out about the On-time Payment Policy for small businesses.
• Visit the Department of Employment, Small Business and Training website for more information on current initiatives aimed at supporting small businesses.

Last updated: 

10 June 2020