Business groups have praised Josh Frydenberg's first budget as an investment in productivity and growth, with expanded instant asset write-offs among the most popular items offered up by the federal Treasurer.
The Australian Chamber of Commerce and Industry welcomed the coalition's support for small business and skills in the budget handed down on Tuesday, singling out measures to expand the size and the accessibility of the business asset write-offs to a $30,000 threshold, up from the current $20,000.
Eligibility for the write-off has also been extended from businesses with a turnover of less than $10 million, to businesses with a turnover of up to $50 million.
"Expanding the size and the accessibility of the write-off encourages businesses to invest, expand their markets and create more productive jobs by using improved equipment and technology ACCI chief executive James Pearson said.
But the ACCI said flagged cut to the migration cap for the next for years, from 190,000 to 160,000, could deliver a blow to labour demand.
"Businesses who are desperate to fill vacancies so that they can keep meeting their customers' needs, let alone grow and create more jobs, will be disappointed that the government has locked in cuts in permanent migration for the next four years," Mr Pearson said.
"It ignores the evidence of the economic benefit of skilled migration and assumes Australia's needs will be unchanged."
Other positives for small businesses include a tax rates cut to 25 per cent by 2021/22, while an additional $60 million has been set aside for Export Market Development Grants.
Business Council chief executive Jennifer Westacott said, ultimately, revenues from business had underpinned the government's ability to pay for Tuesday's announcements.
"Business has continued to do the heavy-lifting in this budget - which again is proof that when business thrives, Australia thrives," Ms Westacott said.
"We have got to keep the focus on growing the economy, so these tax cuts and spending promises can be sustained."
