**Canberra**: The Albanese Government introduces significant reforms to Commonwealth Procurement Rules, redefining Australian business criteria and launching the Broader Economic Benefits metric, aimed at enhancing defence procurement and industry support amidst geopolitical uncertainty, as endorsed by DroneShield Ltd.
The Albanese Government has announced significant reforms to the Commonwealth Procurement Rules aimed at redefining what constitutes an Australian business, a move endorsed by DroneShield Ltd, a key player in the defence technology sector. The announcement, made in Canberra, is particularly critical at a time when geopolitical uncertainties necessitate a reliable definition for defence procurement.
Under the new guidelines, an Australian business is defined as one which has at least 50% Australian ownership or is actively traded on an Australian equities market. Additionally, the business must be an Australian resident for tax purposes and must have its principal place of business within Australia. These clarifications are expected to aid the government in accurately directing policies related to defence and procurement, ensuring they are better tailored to support the local industrial base.
Oleg Vornik, CEO of DroneShield, expressed the company’s support for these reforms, stating, “The importance of sovereign capability cannot be overstated at times of geopolitical uncertainty.” He further noted that the changes would enable the government to make informed assessments of policies affecting both local and international businesses in Australia and to direct future policies with greater confidence.
In conjunction with this definition reform, the government introduced the Broader Economic Benefits in Procurement metric, which will broaden the criteria considered during government tendering processes. This new metric will require that future procurement evaluates a wider array of factors when assessing submissions for government contracts, allowing for a more comprehensive understanding of potential economic impacts.
The Sovereign Australian Prime Alliance (SAPA), of which DroneShield is a part, played a significant role in the development of these reforms through participation in a Ministerial Working Group. SAPA highlighted its readiness to collaborate with Commonwealth government departments to implement the changes in procurement and tendering processes. Moreover, the alliance has encouraged state and territory governments to adopt this approach, reflecting the broader consensus reached at the federal level.
SAPA expressed gratitude to those involved in the Working Group, particularly acknowledging the contributions of representatives from the Department of Finance and the Department of Industry, Science & Resources, along with Minister for Finance Sen. the Hon. Katy Gallagher and Minister for Industry, Science & Resources, the Hon Ed Husic MP. The group also thanked Senator for ACT David Pocock for his advocacy in support of the reforms.
As the government moves to embed these reforms in the procurement processes, the implications for Australia’s defence procurement landscape and its broader economic environment remain to be fully realised.
Source: Noah Wire Services
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