Greek Australian small business owners will be able to reap impressive tax breaks from the federal budget as the government hopes to boost economic productivity.

Businesses making more than $2 million will receive a 1.5 per cent tax cut, while smaller businesses like sole traders and trusts will see a 5 per cent cut.

Greek Australian businessmen and women will also be given an incentive to buy new equipment and replace ageing infrastructure.

Starting from budget night, small businesses can buy as many items under $20,000 and receive an immediate tax deduction on each item.

It’s a measure Steve Soultanidis, owner of Oakleigh Fish ‘n’ Chippery says will help his business grow.

“We’ve actually been talking about doing a new kitchen area, so spending a bit on the kitchen, making it more useful and easy to operate,” he tells Neos Kosmos.

“I am expecting to invest more in the business and it gives me more opportunities to employ more people and help out part timers.”

He says he was “impressed” the government decided to look after small businesses.

The Hellenic Australian Chamber of Commerce and Industry says while the government has played it safe, they have managed to create measures that will help spur on the economy.

“We are pleased the government has focused on the small business sector by providing incentives we believe will stimulate the economy and hopefully lead on to further employment opportunities,” HACCI’s director of finance Steve Sakkas tells Neos Kosmos. “The recognition of all business types is important as it provides a level playing field and equality in the business sector.”

Start ups get cut in red tape

Those hoping to open a business will have more incentive as the government moves to cut red tape.

Business registration will be streamlined, with the government launching one website to act as a one-stop shop for setting up a business.

Start-ups will also be able to immediately deduct expenses such as legal fees they incur when setting up a new company.

Mr Sakkas has applauded the government for these measures, after seeing so many Greek Australians struggle to enter the business market and stay afloat in the first couple of years.

“The government’s clear intention to reduce red tape will help all small business owners focus on operating their business rather than the paper work,” he says.

Businesses that were launched before the measures will be able to deduct some of their start up costs if they happened in the last five years, while those that start after June 30, 2015 will be able to claim immediate deductions.

Mr Sakkas admits he would have liked to have seen cash incentives rather than tax deductions make it into the budget instead.

“While the accelerated timing advantage of an immediate deduction for start-up costs appears attractive a direct cash incentive would be more helpful than a tax deduction.”

In 2013, the Australian Bureau of Statistics reported that an average of 44 small businesses were closing their doors every day.

High labour and start up costs, rents and red tape were seen as the biggest hindrances to businesses surviving the first five years.