A Labor government would make it easier for small businesses to become corporations to gain all their added benefits.
Opposition Leader Bill Shorten says more small businesses are moving towards becoming companies, but he said setting up these structures takes time and money, and maintaining them is even more expensive.
He has told a small business audience that one option would be to adopt a successful measure in the United States that has created a specific class of corporations for small firms.
"This differentiated approach recognises that compliance measures should be tailored to match the size of business," he told a Council of Small Business of Australia conference.
He also reiterated Labor's aim of a five percentage point cut in the small business tax rate to 25 per cent, a pledge he made in his budget reply speech in May.
This is greater than the 1.5 percentage point reduction to 28.5 per cent that the Abbott government implemented from the last budget, and which Labor also supported.
He said he didn't expect a "pat on the back" from Prime Minister Tony Abbott for voicing a bigger tax cut or a "spontaneous round of applause" from Treasurer Joe Hockey.
"But I was surprised the government dismissed the idea out of hand. Surprised and disappointed," Mr Shorten said.
He said Australia won't be ready to face the challenges of the future if governing is reduced to a democratic "tit-for-tat".
He said if new prime ministers spent the first half of their term dismantling everything their predecessors built and in the second half promising everything to cling to power, it would only create uncertainty for the Australian people, business and investors.
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