In August, the Minns Labor Government announced it has surpassed $10 billion in annual government spend with NSW based small and medium businesses (SMEs), describing the milestone as a major step in supporting jobs and local communities.

But while the achievement has been widely welcomed, questions remain over how much of that money is reaching regional New South Wales.

The Government’s figures show $10.1 billion was spent with SMEs in the 2023–24 financial year, up from $8.7 billion in 2021–22.

That spend accounts for almost a quarter of the state’s $42 billion annual outlay on goods, services, and construction.

Changes introduced last year raised the threshold at which agencies can directly procure goods or services from SMEs from $150,000 to $250,000.

In the first year of operation, more than 1,500 contracts in that range went to small and medium businesses, with around 51 per cent awarded to small businesses.

Following that change, the government awarded more than 1,500 contracts valued between $150,000 and $250,000 to small and medium businesses in 2024.

Around 51 per cent of goods and services contracts valued between $150,000 and $250,000 went to small businesses.

Ministers say the reforms are helping to cut red tape, open opportunities, and level the playing field for operators.

Minister Courtney Houssos said her party "will continue to work hard to create even more opportunities to allow small businesses to grow.”

As part of their reform package, the NSW Government also snipped some red tape by allowing small businesses to provide insurance information once a contract is awarded instead of during the tender process.

Also mooted is the Workers Compensation Legislation Amendment Bill 2025 which is currently being blocked by the Liberals and Greens in the Legislative Council.

Government says without the reform, premiums paid by businesses are forecast to increase by 36 per cent over the next three years.

“Small businesses are the backbone of the state’s economy,” Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said.

“They deliver world-class solutions while supporting families and households and growing the economy.”

But are businesses in western New South Wales seeing their fair share of this record spend?

Member for Barwon Roy Butler said his first concern on hearing the announcement was making sure regional areas were not left behind.

“The first thing I thought is, what can I do is make sure that a portion of funds is set aside for regional businesses,” Mr Butler said.

“The risk is this funding becomes metro-centric and the people in bush aren’t prioritised.

“I’m back in Parliament this week, and I intend to call a question on notice as well as have a discussion with the minister about how we can ensure that regional New South Wales gets a fair share.

"At least a third of the funding should come to regional New South Wales.”

Mr Butler argues that equity should be the guiding principle, even if the proportion of businesses is lower in rural areas.

“Regional New South Wales needs to get a pro rata share."

"There may not be population but that’s not the point. It should just be done on an equitable basis,” he said.