Small businesses and pensioners are the big winners from last week's Federal Budget, according to Bowral Chamber of Commerce president Laurie Stewart.

Mr Stewart said he had good first impressions of the 2001 budget, but it would be a while before the wider community uncovers what lies beneath the surface.

"On the surface, my initial impressions are that it is good for small business which is good for Australia," Mr Stewart said.

"That's because small business is what this country is all about,'' he said.

"And the help for pensioners and the retired is overdue.

"That assistance should help stimulate spending which has got to be good for us."

The Coalition's huge reduction in national debt should also be commended, as Mr Stewart cited the government's hefty deficit when they originally took over.

"It's significant what this government has done for national debt," he said.

However, Mr Stewart claimed there is one aspect for small business which needs alterations - the GST.

"The GST has made a real squeeze in profit margins," he said.

"And I think that applies for most businesses."

Mr Stewart is also adamant that BAS reports need to be modified to offer a helping hand for small businesses.

"I'm disappointed to see the government has not taken the advice from small business and simplified the method of reporting," he said.

"That is something that I think should be rectified.

"It consumes so much time to be 100 per cent accurate.

"For anyone completing a GST form for the first time you need to be a Rhodes Scholar to understand it.

"Even professionals are confused by the GST return form."