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COVID-19: Supporting the recovery of small and medium enterprises

Published: 
10 June 2020 1:27PM

The Queensland Government recognises that small and medium enterprises (SMEs)—businesses employing less than 200 people—are vital to Queensland’s economy, regional prosperity and job creation during the COVID-19 recovery. Their size makes them particularly vulnerable to the disruption caused by COVID-19, which is why the State Government is introducing a range of activities to support their recovery and kickstart the Queensland economy.

The Buy Queensland approach puts Queensland jobs as the first priority and is increasing opportunities for Queensland SMEs to supply to the government.

Procurement target for SMEs

From 1 July 2020, all agencies subject to the Queensland Procurement Policy (QPP) must collectively procure 25% of the state’s procurement spend by value from Queensland SMEs, increasing to 30% by 30 June 2022.

The 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.

The target 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.

Paying businesses promptly

We have reduced payment terms for all agencies subject to the QPP. This will expedite supplier payment and help support businesses during COVID-19. We will pay correctly rendered, valid invoices from all suppliers, regardless of business size, as soon as they are received and processed. Payment should be made within 20 calendar days from the time of receipt.

The On-time Payment Policy, which reduces payment terms for small businesses from 30 to 20 calendar days, will commence on 1 July 2020. This policy will support the COVID-19 expedited payment measure by ensuring small businesses can access penalty interest for eligible invoices that aren’t paid within 20 calendar days.

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