Budget 2015: Small business wins big in second Hockey budget

Treasurer, Joe Hockey.

Small business are the big winners of Treasurer Joe Hockey's second budget, which he billed as the next step of the government's plan to strengthen the economy.

Hockey has promised $5.5 billion for small businesses including an immediate 100 per cent tax write-off for assets costing less than $20,000.

Small business will also get a 1.5 per cent tax cut to their company tax, bringing it down to 28.5 per cent.

Hockey said this was the lowest small business tax rate in 50 years.

"We are only government that will deliver tax cuts for small business," he said.

"We recognise small business needs better cash flow, so from 7.30 tonight small business can claim a deduction for each new item they purchase up to $20,000."

The government will also abolish fringe benefits tax on mobile devices, while the much vaunted relaxation of taxation on employee share schemes will go ahead.

The budget deficit has doubled to $35 billion in 2015-16, while the deficit will fall to $7 billion by 2018-19.

Hockey said this budget meant more jobs and more innovation.

"This is a budget for small business people who want to innovate and grow," he said.

"Now is the time for all Australian to get out there and have a go."