Home topics news Ombudsman Bruce Billson at The Tax Summit 2023. Credit: The Tax Institute of Australia News News Government procurement rigged against SMEs, says ombudsman Yajush Gupta May 21, 2024 Australia’s dream of a thriving small business sector is being hampered by a government procurement system stacked against them, according to a scathing new report by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO). The report paints a grim picture, revealing a system riddled with risk aversion that discourages small businesses from even attempting to compete for government contracts. This not only stifles the growth of small businesses, but also hurts taxpayers in the long run. “The existing system is just not working… the process involved in bidding is too complicated, not conducive to competition, opaque, inefficient, and incongruent with private-sector processes,” ASBFEO’s, Bruce Billson said. “The Government’s initial response to our inquiry is underwhelming… several of the substantive recommendations and proposed reforms that have not been embraced, were rejected without any discussion at all.” The report, which investigated the effectiveness of Commonwealth procurement rules for small businesses, found a system riddled with problems that leave small suppliers feeling excluded. The Ombudsman’s inquiry wasn’t just critical of the status quo, it also took aim at the government’s initial response to its recommendations for reform, calling it “underwhelming” and failing to address the core issues. “It’s abundantly clear that the existing system isn’t working as intended for many small businesses… The steps already taken have not shifted the dial