Despite talk that the 2011 budget would contain severe cuts driven by the Federal Government's desire for a 2012-13 surplus, the overall outcome has been a positive one for small business.

Small to medium sized businesses can rejoice in the $700 million decrease in tax instalment payments this financial year, and take heart in the $34 million package for Australian manufacturers to supply resource projects. Innovation minister Kim Carr has said that these projects will see large mining and resource companies integrated with SME suppliers.

"Some suppliers are missing out because of established global vendor lists and the trend towards pre-assembled modules," Carr says. "The Government's new initiative will help support and sustain the resources boom - and lock in the benefits for Australian workers for decades to come."

The corporate income tax rate will also be reduced from 30 per cent to 29 per cent, with the one per cent funded by the Minerals Resource Rent Tax. The budget builds on last year's Henry Review, which proposed the simplifying of capital gains tax and trusts for small businesses. The Review will be looked at again this October to help the government with its proposed tax reform initiatives.

Other benefits for SMEs include a single rate of fringe benefits tax for cars owned by small businesses, regardless of the distance driven. This is expected to save companies $954 million over five years.

Another automobile-related benefit is the $5000 tax write-off on the purchase of new vehicles that replaces the Entrepreneur's Tax Offset. Assets that cost up to $5000 will also qualify for an immediate write-off however these measures will not be implemented until 2012-13. This means that they cannot be claimed until 2013-14, which may affect SMEs that are currently struggling and need the offset now.

There hasn't been much direct assistance to small businesses as a result of Treasurer Wayne Swan's focus on "jobs, jobs, jobs." In his fourth annual budget, Swan has allocated $1.75 billion for vocational education and training, and $101 million for a national mentoring program that will benefit 40,000 apprentices. There is also the $233 million set aside for new welfare programs for those facing long-term unemployment, and $143 million invested in literacy and numeracy programs that will create 30,000 extra places.

These initiatives, while not specifically made for SMEs, are perfectly applicable to them, particularly in the hiring process. The unemployment rate is predicted to fall to 4.5 percent in two years time, and with the worsening skills crisis in Australia, it is no wonder that Swan has allocated $3 million worth of workforce benefits in the 2011 budget. Swan labelled the budget a "plan to help industries get the skilled workers they need, to modernise apprenticeships and to ensure more Australians enjoy the economic and social dividends of work."

The centrepiece of this plan is the $558 million allocated to the National Workforce Development Fund, which will create 130,000 new training places over four years. The fund is open to bids from individual companies. Small businesses can get two-thirds of their training costs paid by the government, while medium-sized businesses can get 50 per cent. The government will pay one-third of the training expenses of large businesses.

"Australian businesses embrace fierce competition, but many are feeling the pinch of workforce shortages and our rising dollar. So in this budget, we do what we can to help small businesses in particular," Swan said in his budget speech to Parliament.

The budget also sets aside an additional $7.1 million in funds for the Small Business Support Line. Even though there aren't any innovation or export initiatives, or even grant programs for rapidly expanding small businesses, there are plenty of small and indirect wins for SMEs.