The government wants to make it easier for businesses to retrain employees for different roles, removing fringe benefits tax from education and training that isn't directly related to a worker's current role.
Treasurer Josh Frydenberg is also set to expand tax concessions available to small businesses with a turnover between $10 million and $50 million, at a cost of $105 million over the forward estimates.
Under the changes to fringe benefits, which will come into effect immediately, all businesses would be able to avoid the 47 per cent tax on training or education for their staff that are either redundant or soon to be redundant.
In the current system, education and training provided by employers must relate to an employee's current role to avoid the tax.
Flexibility in industrial relations and workplace settings has been promised by the government, which has also relaxed rules for businesses receiving JobKeeper wage subsidies to direct staff to do other roles if their normal work is not able to be done.
It would mean a retail store closing its physical shopfront and moving to online-only retail could retrain staff set to be made redundant on the shopfloor into roles like online marketing or logistics.
The employer could also offer an employee training for a future role outside of the business, without being hit by the tax.
It's expected the measure will cost $7 million over the forward estimates.
The government is also set to start consultation on whether individuals should be allowed to claim tax deductions for training and education that aren't related to their current employment, something that isn't currently allowed.
There is concern the current system doesn't encourage people to retrain or reskill to help further their career.
Other tax changes for businesses with up to $50 million in turnover will be introduced in three phases, with businesses to be able to immediately deduct some start-up expenses and prepaid expenditure from July 2020.
From April next year eligible businesses would be exempt from the Fringe Benefit Tax on carparking and work-related portable electronics provided to employees.
It's expected 20,000 businesses will benefit from the changes for small and medium businesses.