Small and medium companies to get tax cut

The federal government will reportedly announce July 1 tax cuts for small and medium businesses in Tuesday night's budget.

Small and medium businesses are reportedly in line for tax relief from the federal budget. (AAP)

Small and medium businesses are in line for tax relief in Treasurer Scott Morrison's first budget.

Tax cuts will be offered to those from July 1, but larger companies will have to wait for a gradual decrease in their rates over years.

The Australian Financial Review reports the government will announce on Tuesday night it's expanding the eligibility threshold for small and medium businesses to a turnover of up to $10 million.