A business lobbyist and advocate for cutting penalty rates has been appointed Australia's first small business and family enterprise ombudsman.

Small Business Minister Kelly O'Dwyer has chosen Kate Carnell, who until recently led the Australian Chamber of Commerce and Industry [ACCI] and who is also a former ACT chief minister, to fill the newly created position for a five year period.

Small Business minister Kelly O'Dwyer with Kate Carnell, the new Small Business ombudsman. Credit:Andrew Meares

Ms Carnell will lead a small team and the independent office has been allocated a budget of about $6 million to offer a range of services to small and medium sized enterprises with employees of less than 100 people.

Ms Carnell told Fairfax Media that, in her view, the new Ombudsman's position had two key roles.