The Albanese government insists changes to government spending rules will boost opportunities for Australian small and medium-sized business and help tackle climate change.
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Finance Minister Katy Gallagher said an overhaul of public procurement processes, flagged before the May election, will put more emphasis on "buying Australian" and should increase spending on green technologies and help the government meet its Net Zero by 2050 target.
Government departments spend approximately $70 billion on contracts each year. The new Commonwealth Procurement Rules increase targets for smaller businesses vying for commonwealth contracts from 10 per cent to 20 per cent.
Climate change and the commitment to reduce Australia's emissions by 43 per cent by 2030 is now also part of the process. The revised rules require officials consider a procurement's broader impact on climate change when undertaking the value for money assessment.
Senator Gallagher said the revamped rules were part of Labor's Buy Australian Plan offered in the lead up to the election. She said more elements of the plan would be announced later.
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