Prime Minister Kevin Rudd on said on Thursday morning that Federal Government will shred off the amount of tax that burdens the majority of the Australian citizens.

Minister Rudd said the tax cuts will improve the stability of small businesses and working families.

The Henry Tax, reviewed by Treasury Secretary Ken Henry, will be delivered three days from now, when financial markets close.

The State is expected to release a response on the same day.

Mr. Rudd said the Henry Tax and the 2010/2011 budget - which will be released on May 11 - will provide new opportunities for prosperity from Australian families and small firms.

"In our response to the Henry review the government will make the tax system stronger and fairer," he said in a speech during a breakfast meeting with the New South Wales business chamber members.

"Improving the structure of the tax system by replacing inefficient taxes with more efficient ones and streamlining governments and administrations reduces complexity and makes the Australian economy more productive," Rudd stressed.

Rudd also points out that the tax system should be more friendly towards small business firms and working families.

The State will provide a tax policy and budget package for the next two weeks. He said lowering tax to these sectors will provide an opportunity for Australia to become a strong economic competitor in the global market.

"If we make the right decisions we will convert our strong economic position into a new generation of prosperity."