Abbott to confirm parental leave levy gone

Prime Minister Tony Abbott will confirm a tax levy on big business won't go ahead, but small business tax cuts will be implemented from July 1.

The 1.5 per cent levy, originally planned to fund the now-dumped paid parental leave scheme, was to be offset by a 1.5 per cent tax cut.

But Mr Abbott will reveal in a speech to the Australian Chamber of Commerce and Industry on Wednesday that the budget will have measures to cut small business tax bills, already funded by taking the scheme off the table.

The chamber's CEO Kate Carnell says she's disappointed there won't be a wider company tax cut, but pleased small business will get a much needed injection of confidence.

Australia has one of the highest corporate tax rates in the world at 30 per cent and needs to come down to 25 per cent, she told ABC radio.