Tax changes worth $480 million over four years targeted at small and medium business were announced this morning.

The 11 tax changes were part of a package aimed at promoting growth and jobs as the Government reacts to an international finance crisis and recession at home.

Other elements in the package included:

* an expansion to the export credit scheme;

* extending what cases the Disputes Tribunal can consider;

* expanded business advice services;

* and a prompt payment requirement for government agencies.

Prime Minister John Key said the measures were part one of the Government's Jobs and Growth Plan and more announcements were to be made.

"I want to lighten the load on small and medium-sized businesses. Improving the environment for business, and therefore jobs and growth is a long-term undertaking for the government," Mr Key said.

Today's tax announcements were aimed at reducing the impact of tax on firms' cashflows.

The two largest business tax measures were removing the requirement for businesses to factor in a 5 percent growth in income when they pay provisional tax and cutting the penalty for underpaid tax from 14.24 percent to 9.73 percent.

Finance Minister Bill English said the changes would be in legislation to be introduced next week and be in place by April 1.

Other tax initiatives in the package included more generous business-related tax deductions.

There were a range of threshold changes including GST, and changing the once a month filing and payment threshold for PAYE deductions from $100,000 to $500,000 with the same increase in the fringe benefit tax filing threshold.

Advice will be easier to access. The Biz 0800 line will be beefed up and businesses can access free business health checks and a mentoring service.

The aim of widening the scope of the Disputes Tribunal was to reduce the amount of time small businesses spent in District Court battles.

The claim levels of $7500 and $12,000 would be increased to $15,000 and $20,000.

Changes to the export credit scheme will give greater access to short-term trade credit insurance, which is used as a guarantee to banks that an exporter will be paid.

The State Services Commission has agreed to the government's request to pay bills promptly or early to help small and medium businesses with cash flow.