Opposition Leader Tony Abbott says a coalition government would create a small business and family enterprise ombudsman to advocate for the sector and provide dispute resolution and support services.
"Small businesses are often wedged between rules for individuals and rules for businesses because effectively they are so often individuals in business," Mr Abbott said.
"This new ombudsman will be a policy advocate ... and will also be able to help small business people be able to resolve disputes with government agencies."
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The idea was immediately panned by the banking sector which warned it could be counter productive and result in less finance for the small business sector.
The Australian Bankers' Association (ABA), whose members include the big four banks, says that will likely increase the risk that banks face when lending money.
ABA chief executive Steven Munchenberg said banks would be more reluctant to lend money to small business.
"It could end up impacting on credit availability to the sector," he said in a statement.
