Federal Labor reveals ‘buy Australian’ plan to aid local businesses
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Small and medium businesses will now have a greater chance to bid for lucrative federal government contracts thanks to a Labor plan that will allow the spending of more taxpayer dollars locally.
Opposition Leader Anthony Albanese will use Saturday’s NSW Labor conference to unveil his ‘buy Australian’ plan, which will lock the Australian Government into using more Australian-made goods, products and materials in Commonwealth contracts.
A new Future Made in Australia Office would help promote government purchasing opportunities to small businesses, Indigenous enterprises and regional communities.
The Federal Government has spent almost $190 billion on procurement over the past three financial years, with just a quarter of the almost $54 billion worth of contracts awarded to local small and medium-sized enterprises in 2019/20.
Also, 95 per cent of the top-20 infrastructure projects worth more than $500 million were delivered by foreign-owned companies from 2015 to 2020.
Because of these, Labor has pledged to work with state, territory and local governments in breaking up larger infrastructure contracts into multiple packages to allow smaller Australian-owned businesses to bid. This will help build up and strengthen Australia’s sovereign capability.
Under the ‘buy Australian’ plan, government agencies will be able to directly engage with small and medium-sized businesses for contracts of up to $500,000 rather than the current $200,000 threshold.
Likewise, at least four per cent of research and development in government-funded agencies worth more than $50 million would be sourced locally from small businesses.
A secure Australian jobs code would ensure that the government spends money with companies that treat workers fairly and have environmentally sustainable outcomes.
Firms would also have stronger requirements to declare whether they were using offshore tax-havens.
Guidelines will be developed to boost the use of Australian-made uniforms, merchandise, paper and boxes.
Labor will also leverage government investments for emissions reduction and maximise local content on defence projects.
The $20 billion provided through partnership arrangements with states and territories would also have to be consistent with the new procurement guidelines.
“Together these plans will ensure that Australia’s capacity to manufacture essential goods in areas including health, energy, infrastructure, defence and space and communications is increased and that we are more resilient,” Mr Albanese said.
NSW Labor leader Chris Minns will also address the conference online.
With AAP
Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.
