Selling to Government

For: 

The Australian Government purchases a wide range of goods and services for delivery right across Australia including regional and remote areas. In 2017-18 almost 39,000 contracts, valued at nearly $13 billion, were awarded to over 9,000 different small and medium enterprises from right across Australia.

Your business could share in this. Selling to the Australian Government may be an opportunity to expand your client base, increase your income and grow your business.

Whether you are a new business operator or a well-established company, if you provide quality goods and services that the Australian Government buys, there may be an opportunity for you.

Selling to Government

The Government has refreshed its Selling to Government website, which includes information on how you can make selling to the Government your business. The website provides guidance on how to sell to the Government, as well as details and case studies on some of the things the Government purchases.

To make it quicker and easier for small business to compete for Government procurement, the Government has developed the Commonwealth Contracting Suite, which is mandatory for contracts valued under $200,000, and can be used for contracts valued up to $1 million. This has streamlined, standardised and simplified procurements for both suppliers and government buyers, creating one system across Commonwealth non-construction and non-ICT contracts.

For more information visit the Department of Finance's website at the selling to government or Commonwealth Contracting Suite pages 

Digital Marketplace

To make it easier for smaller businesses to compete for the Government’s $9 billion procurement of digital services, the Digital Marketplace is levelling the playing field for start-ups and small and medium enterprises competing for government spending on digital services.

Encouraging adoption and simplifying the procurement process for government buyers, the Digital Marketplace is ensuring greater access to digital services opportunities and encouraging buyers to open their sourcing requirements to more sellers of digital services. By increasing opportunities and improving the seller assessment process, the Digital Marketplace is making it simpler, faster, and less resource-intensive for sellers to compete for government business.

For more information visit the Digital Marketplace website.

Helping cash flow

The Government recognises the importance of cash flow for small businesses, which is why the Government is setting an example by paying its bills on time.

In 2017–18, approximately 97 per cent of Australian Government bills under $1 million were paid within 30 days. From July 2019, the Government has committed to pay invoices for contract work up to $1 million within 20 days.

Through a new procurement policy being developed, the Government will require large businesses seeking to tender for government contracts to match the 20-day payment policy.

The Government is also developing a payment times reporting framework requiring large businesses with an annual turnover of over $100 million to publish information about how they pay small businesses. By providing transparency about large business payment performance, small firms will be able to make more informed decisions about their potential customers. Greater transparency will also create pressure for cultural change to improve the payment practices of large businesses. 

For more information visit the Paying small businesses on time page on this website.

e-invoicing

The Government is implementing an electronic invoicing framework to save businesses time and money and improve payment times. e‑Invoicing can reduce processing times and errors leading to faster payment of invoices.

e-Invoicing is the automated direct exchange of invoices between the supplier’s and buyer’s software. e-Invoicing simplifies and automates the exchange and processing of invoices, setting up business operations for better and quicker payment terms. It is estimated to be 70 percent cheaper to automatically process an e-Invoice than traditional paper or PDF invoices that are processed manually (Deloitte Access Economics 2016).

The Government’s commitment to progressively adopt e-Invoicing will make it easier for small businesses to work with government and other industries. The Government is also working with the New Zealand Government to create a seamless trans-Tasman business environment. This approach recognises the future of the digital economy, the digital transformation of both countries and provides opportunities for growth and jobs.

For more information visit the Australian Taxation Office website. 

Additional information

AusTender

AusTender is the Australian Government’s procurement information system. It provides a centralised point for the publication of Australian Government business opportunities, annual procurement plans and the details of contracts awarded.

For more information visit the AusTender website.