Small and medium businesses in NSW will find it easier to secure government contracts, under a government plan to turbocharge the economy.
The threshold at which government departments can buy goods and services directly from small and medium businesses has jumped from $150,000 to $250,000.
Premier Chris Minns says the government buys around $40 billion worth of goods and services every year, and he's keen to see small businesses get a larger slice of the economic pie.
"The bigger we can make the slice that goes to small businesses, the better," he said.
"Small and medium businesses have been through a very tough time over the past few years, the very least the government should do is make accessing government contracts simpler and easier."
The state's 840,000 small businesses make up 98 per cent of all businesses in NSW.
Another change will mean they'll no longer have to prove they have insurance before tendering for a government project, with proof of insurance required only if the contract is awarded.
Minister for government procurement Courtney Houssos says easing the rules is just the first step in a plan to reform how the government handles and supports small businesses and domestic manufacturing.
"The previous Liberal-National Government never developed a cohesive policy to support local procurement. Instead of buying local, they sent major projects overseas, costing the state billions of dollars and thousands of jobs," she said on Sunday.
The changes do not apply to construction businesses.
Those who are eligible include those who work in catering food and beverage services at state-owned buildings, office and furniture suppliers and maintenance and landscaping at government facilities.
Minister for small business Steve Kamper says the changes will hopefully provide a boost for thousands of jobs.
"By increasing the direct procurement threshold we are providing small businesses with the most valuable resource in business, greater opportunity," he said.
