The government will introduce a new tax rate of 27.5 per cent.

Mr Waack said the move would benefit Wimmera businesses.

“The fact the government is starting to look at small businesses and easing up the pressure on them is great,” he said.

“We want to see our main street vibrant with business again, and lowering the business tax rate is the start of that.

“But there is a long way to go.

“The government needs to have a good look at the payroll tax. Wages have increased but the threshold for payroll tax isn't increasing as quickly, so businesses are getting caught in that.”

The budget initiatives also allow businesses within the new threshold to access immediate deductions for assets up to $20,000 until June next year.

Mr Waack said it was a good measure, but warned businesses to be wary.

“It is certainly something people can take advantage of if they need the equipment, but I wouldn't like to see people rushing out buying things they won't really need just to get the tax benefit – there's no value in that,” he said.

Member for Mallee Andrew Broad said more than 15,000 small and medium businesses in the region would benefit from the tax initiatives.

Mr Broad said the new tax rate would allow businesses to reinvest and explore new opportunities.

He said small and medium businesses provided the greatest employment and growth opportunities across the Mallee electorate.

“The majority of businesses are eligible for the increased threshold of $10 million, meaning they have access to the new tax rate,” he said. 

“This is a great win.”

Mr Broad said the immediate deductions for assets up to $20,000 would provide a further incentive for businesses to make capital improvements.

“This government is providing a more secure economic future for all Australians through targeted spending and the encouragement of business growth and innovation,” he said.

“This is about making running a business simpler and more profitable so that more money can stay in the region.”

The new tax rate will take effect on July 1.