"We will introduce legislation during the next session of Parliament, fast-tracking our business tax relief for more than three million businesses that employ almost seven million Australians", the two said in a joint statement.
Labor plans to repeal already legislated company tax cuts for businesses earning between $10m and $50m and is yet to decide on a policy for those earning between $2m and $10m. The timing changes would also apply to the rollout of the 16 per cent tax discount for unincorporated businesses.
"Labor's five-point plan, as they said on the weekend: more tax, more tax, more tax, more tax, more tax", he said.
"In other cases they invested more in their businesses, because small and medium-sized businesses that's what they do".
Australian Industry Group chief executive Innes Willox urged Labor to support the cuts.
Its Executive Director, David Quilty, said the earlier tax cuts will benefit community pharmacy small businesses across Australia, allowing them to invest in the business and employ staff with more certainty. "And if you go beyond Melbourne and Sydney and south-east Queensland or Perth, you go out in the regions, it's pretty much everyone".
But the problem with implementing such tax cuts has been legislating for them because the Government lacks control of the Senate.
Now, Opposition Leader Bill Shorten says those negotiations may not be so hard.
Our economic plan is working and the fast tracking of tax relief for small and medium businesses is an important investment in the future economic growth of our nation. In a beauty parade between giving tax cuts to corporations and funding education for kids, to funding our hospitals, making sure that the sick can afford to see a doctor, I'm always going to pick our kids, and I'm always going to pick the sick, over corporate-tax cuts, " he said.
Mr Frydenberg said the legislation would be introduced into Parliament in the next fortnight and claimed it would be a "real test" for Opposition Leader Bill Shorten.
"But if it's affordable, well, then we'll look at doing both".
That deal included the same 27.5% to 25% cut, but it is scheduled to phase in by 2026-27, which means today's announcement will effectively bring forward the cut by five years.
The prime minister said that whether the cuts lead to higher wages depends on the businesses that will benefit from the policy.
Strong says the decision will hopefully limit investment drain to larger economies such as United Kingdom and U.S., which already have lower tax rates for small businesses. We know that we've seen wage stagnation now for more than a decade.