Supplier Verification Fee

The Supplier Verification Fee exemption criteria is changing. Local Buy initiated the exemption in line with the ATO definition of small business and implemented as temporary assistance to support small business recovery from the impacts of COVID.

The use of the exemption has been significantly higher than expected and highly successful in supporting over 1,800 small businesses, Indigenous and social enterprises. To ensure we provide increased value to all of our suppliers, Local Buy has decided to change the criteria supporting this exemption, while still supporting small businesses and sole traders. Here is an overview:

What is the Supplier Verification Fee?

The SVF is a nominal annual payment to enable Local Buy to manage a large volume of suppliers under a large number of local government pre-qualified arrangements. Part of this fee includes the provision of a Verification Statement, which is formal recognition of the work you undertook to become a Local Buy supplier. The Verification Statement is issued annually and recognises your compliance to and the ongoing management of the Financial, Workplace Health & Safety, Environmental and Quality requirements that are part of the process of being appointed to a Local Buy LGA Arrangement.

We recommend displaying this statement at your business premises, as well as sharing on social media pages and websites to demonstrate to the market that your business has been verified as part of the process of being appointed to a Local Buy LGA Arrangement. Businesses can use the Verification Statement as part of future tender processes to ensure you do not have to duplicate the compliance work you submitted in previous tenders, and you can simply focus on providing information on your technical capability, saving you further time and money.

Why is the Supplier Verification Fee Exemption changing?

The SVF exemption is for those businesses that need it most. Previously, Local Buy had provided an exemption in line with the ATO definition of small business, this was to support small business recovery from the impacts of ‘COVID’ and only ever intended as a temporary support mechanism for small businesses.

The take up of the exemption has been significantly higher than expected and highly successful in supporting over 1800 small businesses, indigenous and social enterprises. To ensure we provide increased value to all of our suppliers Local Buy has decided to change the criteria supporting this exemption.

Understanding the value you receive from this Supplier Verification Fee

Local Buy is committed to supporting suppliers in achieving long-term success by facilitating their ability to work with local councils. This is achieved by streamlining the procurement process for suppliers and councils, reducing the time and cost associated with tendering while ensuring that quality assurance standards are met. Our unique approach of going to market once every 3 months makes it easy for suppliers to engage with local councils and provide their products and services.

Through Local Buy, suppliers have access to the necessary resources and support to enable them to work efficiently and collaboratively with councils during the procurement process. As a result of being on a Local Buy Arrangement, suppliers can access a large audience of councils ready to purchase their products and services, expanding their market reach and increasing their potential for success.

Below outlines the many benefits our approved suppliers receive by being on Local Buy Arrangements;

• Local Buy Approved Supplier Badge for marketing purposes
• Local Buy Verification Statement
• Dedicated procurement platform - 1 to many providing access to the broader local government market and beyond and the ability to manage all of your compliance documentation and insurances in one place
• Dedicated Customer Success Managers here to support your business
• Education and learning opportunities on ‘how to do business with government’
• 10% discount in advertising with LGAQ’s local government news publication ‘Council Leader’
• Improved visibility of your business to a broader market
• Access to Local Buy News – a monthly communication on promoting and enhancing procurement in Local Government, our approved suppliers and arrangements
• Category Manager updates about our arrangements
• Arrangements open every 12 weeks, meaning your business doesn’t have to wait for years to apply for other categories or arrangements
• Supplier Intelligence that enables your business to identify whether you are a local business, indigenous enterprise or social trader. This program will continue to be enhanced further allowing your business to showcase your point of difference e.g. ESG, Cyber.
• Ongoing Supplier Engagement Program
• The Supplier Verification Fee is Tax Deductible. 

This nominal annual fee is normally $500 upon appointment to Local Buy, and $250 each year thereafter. Those businesses that have been claiming exemption that are no longer eligible will simply pay the annual $250 fee after your first year with Local Buy.

Does this change impact your business?

The new exemption criteria has been changed to support those businesses that need it most. From the 1st of July, to be eligible for this exemption, do you meet the following criteria?

• Have an aggregated revenue of less than $500,000 per annum.

Or be a:

• Sole Trader
• Registered charity
• Indigenous businesses (Supply Nation or Black Business Finder)
• Registered social enterprise (with Social Traders)

The Supplier Verification Fee exemption is only applicable to small businesses with a registered head office in Queensland, Tasmania or the Northern Territory. Proof of eligibility will be required.

• New Suppliers will be notified as they participate in the August round of Arrangements.
• Existing Suppliers will be notified via formal letter, advising of the changes and when they will be affected (following the first 12 months of being on their initial Arrangement).
• Prior to each round of Arrangements, suppliers from the corresponding round 12 months prior will be notified of the requirement to now pay the SVF.

For more information, please contact enquiry@localbuy.net.au