The federal government is seeking to develop a definition of an Australian business for use within the context of the Commonwealth procurement framework, in a bid to boost opportunities for Australian businesses.
A consultation paper has been developed by the Federal Department of Finance, providing an overview of the Commonwealth procurement framework and the potential use of an Australian business definition within this context.
It also presents information on a range of business-related definitions that are currently being used by government entities.
“Australian Business is not commonly defined in Australian Government legislation or policy and the Australian Government does not have a standard definition of an Australian business that is applicable to all situations,” said the paper.
“Instead, there are a range of Australian business-related definitions that have been adopted for different purposes, including at the federal, and state and territory level.”
Submissions close on 25 October, with the Department of Finance inviting any interested parties to submit comments and suggestions.
Finance Minister Katy Gallagher said the consultation paper is an important step which will give better data on how procurement contracts are awarded and how Australian businesses can be better supported.
“We will always stand up for local businesses, which employ millions of Australians and contribute enormously to our economy,” she said.
Industry and Science Minister Ed Husic also welcomed the public consultation.
“Bringing clarity to how an Australian business is defined will mean when we say we are awarding money for local procurement, it will flow to the right firms,” he said.
“We want a definition that is robust enough to tell when a company is genuinely Australian.”
Read the ‘Defining an Australian Business for Commonwealth Procurement’ consultation paper here.
