Tasmanian Senator Jacqui Lambie has backed plans for a lower tax rate for small businesses, arguing the sector is "on its knees".
The peak body for small business, the Council of Small Business Organisations Australia (COSBOA) has launched a campaign blitz to put pressure on both major parties this election to do more for small business.
COSBOA chief executive Luke Achterstraat said small businesses are doing it "tough", arguing that like their customers, "they're bearing the brunt of the cost-of-living crisis, red tape is increasing, and staff are getting harder to find".
"Our research shows that without urgent change, 50 per cent of small businesses are worried about surviving," he said.
The body has called for the company tax rate to be lowered from 25 per cent to 20 per cent, and on Monday, Senator Lambie said this should be taken further.
The Palawa woman who is campaigning for re-election told Sky News the small business tax rate should be lowered to 15 per cent.
"I'd be going further," she said. "COSBOA is being nice, and they're being kind – I'd go 15 per cent."
Senator Lambie said it was "about time" she and fellow Senator David Pocock were given the "promised" definition of a business and called for it to be expanded from 15 to 25 staff.
It comes after the Jacqui Lambie Network (JLN) Senator was highly critical of the lack of means testing in tax cuts announced by the Labor government in last week's budget, arguing "giving rich people tax cuts is not a viable option".
She told ABC News there were "millions of us there" - including herself - who had enough money and didn't need tax cuts, instead arguing it could be given to lower income groups and small business.
Small business support was a key issue during the last week of parliament, with both major parties accused of stalling progress on the Instant Asset Write-Off (IAWO). COSBO said failing to account for IAWO in the budget papers left "small businesses in limbo".
"Small business needs certainty when it comes to the Instant Asset Write-Off. Not only is this measure unaccounted for in the budget, but it is yet to even be legislated for this financial year," Mr Achterstraat said.
"In a volatile economic environment, the IAWO should be made permanent to provide an added incentive to invest and improve business."
Senator Lambie doubled down on her criticism of Labor last week, telling Sky News: "Small business is the enemy of the Labor Party – I don't know what they got against small business by my God."
"I am begging the treasurer, you know Jim Chalmers, come down to my electorate – I don't think you have had your boots and your old jeans on; I think it is time you got back to reality," she said.