The Barnett government has increased its price preference for regional business to $250,000, it announced today.
The boost to the ‘Buy Local’ policy was one of the Liberal National government’s election commitments to increase regional businesses’ competiveness for government contracts.
Small Business Minister, Liza Harvey, said the price preference was designed to offset the higher transport costs and economies of scale making it difficult for regional businesses to compete against metropolitan firms.
“The revised threshold will help regional businesses and those businesses using regional workers or supplies to successfully tender for government work,” she said.
Finance Minister, Mike Nahan, added that the reduction for evaluation purposes will be up to $250,000 on goods and services contracts and up to $500,000 on works contracts.
In practice this means that a regional business will be able to win government contracts even when its tender is up to 10 per cent higher than its non-regional competitors, Mr Nahan said.