AllFOR IMMEDIATE RELEASE 6 March 2025
Canberra:
The Albanese Governments’ Buy Australian Plan which will allow genuinely majority Australian owned SME’s to better compete for government business is a welcome first step, according to AIDN CEO, Mike Johnson.
AIDN is responding to the Albanese Government announcement that Australian businesses seeking to win Commonwealth procurement contracts will be captured by an official Australian business definition for the first time.
Under the government’s changes the definition of an Australian business will depend on having at least 50 per cent Australian ownership or being principally traded on an Australian equities market, having Australian tax residency and the principal base of the business being in Australia.
“AIDN has long lobbied for the introduction of an Australian business definition in Commonwealth procurement which reflects Australian business ownership and sovereignty,’’ Mr Johnson said.
“The new definition is a step in the right direction, although AIDN would like to see it become standard across government, including the vital defence sector,’’ he added.
AIDN has long lobbied for the introduction of an Australian business definition in the defence sector which reflects an Australian owned and operated business. This is even more vital given the deteriorating global security situation and the need to develop a truly self-reliant sovereign Australian Defence industry.
The new definition also builds on earlier changes to the Commonwealth procurement framework which increase the SME exemption from $200,000 to $500,000 to give SME’s access to a greater number of contracts, raise SME procurement contract targets and ensuring at least one Australian SME is included in every approach to market involving government procurement panels.
ENDS
MEDIA CONTACT
John Kerin, Manager Government Relations, Australian Industry & Defence Network.
M: 0400 906 545
ABOUT AIDN
Established in 1995, the Australian Industry & Defence Network Limited (AIDN) is the peak industry association representing small-to-medium enterprises (SMEs) supporting the Australian Defence Force (ADF) and the Department of Defence (DoD).
AIDN proudly represents nearly 1,000 Australian SMEs, collectively employing approximately 61,000 Australians nationwide. In the 2021-22 financial year, these dedicated businesses contributed $10.6 billion to the national economy through sovereign supply chains, advanced manufacturing, research and innovation, skills development, and regional and veteran employment.
In an environment of economic and geopolitical uncertainty, AIDN’s agile membership is well-positioned to support the Australian Government’s urgent capability needs. However, clear guidance on specific priorities is essential to unlock the full potential of Australia’s Defence industry.
Through advocacy, representation, and tailored member services, AIDN champions the interests of Australian SMEs within the Defence and national security sectors. AIDN remains committed to partnering with the Australian Government to build a resilient and self-reliant Defence industrial base, driven by the evolving operational needs of the ADF.
The Australian Industry & Defence Network Incorporated (AIDN) is the peak industry association for small-to-medium enterprises (SMEs) who support the Australian Defence Force (ADF) and the Department of Defence (DoD).
