Kate Carnell says her appointment as the nation's first small business ombudsman will provide a strong voice for them inside government.
The former ACT chief minister, who has led the Australian Chamber of Commerce and Industry since 2014, will take up the five-year role in March.
It would provide a one-stop shop for business and steer them to the appropriate parts of government, Ms Carnell said.
"We want them to get on with running their businesses and to be the front door to government," she told reporters in Canberra on Monday.
Assistant Treasurer Kelly O'Dwyer said the appointment was a major win for small business owners that would help create the right conditions for them to grow.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
She noted Ms Carnell started her career as a pharmacist.
"She knows what small business is about and is absolutely the right person for the job," Ms O'Dwyer said.
Business software provider MYOB boss Tim Reed saw it as a significant endorsement by the Turnbull government of the importance small business plays in the Australian economy.
Ms Carnell will be stepping down from her position at ACCI and the group already has started the process of finding a replacement.
"Kate's appointment is a testament to her fine advocacy at the Australian Chamber on behalf of Australia's two million small businesses," ACCI president Terry Wetherall said.
