LAST night's Federal Budget left Rose City's small business community frustrated and wanting more.

Warwick Chamber of Commerce president and Warwick Credit Union CEO Lewis von Stieglitz said the Government's 1.5% tax cut for small business owners would not go a long way.

He said the government needed to do more to prompt growth and convince people to open their wallets.

"It will be a help to some small business owners but it is only a small gesture," he said.

"It is more important for the government to provide increased consumer confidence so people will invest."

Belle Vue Cafe owner Mark Favero said he would not turn his nose up at a tax cut.

"These days you have to take any assistance you can get," he said.

Mr Favero said his business was tracking well at the moment.

But said the extra funds could be used by business owners to alleviate pressures on themselves and other staff members.

Like Mr Favero the majority of Warwick businesses are in a better position than they were at the same time last year, according to Mr von Steiglitz's figures.

But Mr von Stieglitz said the government needed a renewed focus on increasing growth.

He said that the Reserve Bank of Australia had exhausted its ability to stimulate economic growth.

The interest rate, which is at an all-time low of 2% is too low, in Mr von Steiglitz's books.

"It is already so low and has been low for so long that those borrowing don't really care," he said.

"It means self-funded retirees have no money to spend.

"Interest rate cuts are not helping to improve economic growth."

Mr von Stieglitz said the government needed to work out where it wanted to spend money and what areas needed growth.

"They need to spend time on the important policies that will get passed by the senate and not waste their time on other issues," he said.

The WCU CEO also voiced his concern and frustration at the government's proposed bank deposit tax.

This new tax on bank deposits is aimed at building a reserve fund that the government will be able to draw on in the event of a banking collapse.

Mr von Stieglitz said he failed to see how the tax benefited the community.

"I have written to Bruce Scott (Federal LNP member for Maranoa), and all other Queensland senators highlighting that this is not a good idea and that all it will do is hurt the people," he said.

The tax will increase the bank's costs.

Mr von Stieglitz said the WCU would do all it could to minimise the costs that they would have to pass on to their customers.