The bill, which is a key part of the coalitions plans to cut red tape and support small businesses, includes measures to ensure SMEs benefit from all available tax breaks.
Under the new system, the Small Business Rate multiplier will be automatically applied to all businesses with a rateable value of less than £18,000, meaning eligible firms will no longer have to request the lower rate.
In addition, SMEs occupying multiple small premises (with a rateable value below £18,000) will receive the tax break for the first time, following the removal of a requirement that eligible business occupy a single premises.
The government has also taken steps to boost the take-up of Small Business Rate Relief (SBRR), which is a taper relief scheme under which businesses with a rateable value below £12,000 can reclaim a portion of their business rates, up to 100% for premises with a rateable value below £6,000.
The coalition had pledged to find a practical way to apply SBRR automatically, which it has failed to achieve; however, the legal requirement to fill in an application form has been removed, while councils will be given the power to administer SBRR "in a way that best serves local businesses and local needs".
Local Government Secretary Eric Pickles said: "Small businesses are crucial to the country's economy and we know they were hit hard by the financial legacy left us. All too often the tax support government offers is tied up in so much red tape that small businesses are put off from getting it.
"We have already doubled the rate discount small businesses get, but we want to see as many small business ratepayers as possible claim their tax cuts so we will change the rules so councils can administer the scheme without being caught up in unnecessary government red tape."
John Walker, national chairman of the Federation of Small Businesses (FSB), welcomed the measures to reduce the rates burden, which he said were the biggest cost to many businesses, after rent and wages.
"The onus is now on councils to be creative and not needlessly make small businesses go through an application process when it is obvious they are eligible," he added.
Further measures introduced in the bill will allow local authorities to grant discretionary business rate discounts to promote growth and give affected businesses a greater say in business rate supplements.
Dr Adam Marshall, director of Policy and External Affairs at the British Chambers of Commerce (BCC), said: "The government's plan to give businesses a vote whenever a supplement is levied on business rates is exactly what the BCC has campaigned for.
"We cannot have higher local business taxation in any area unless the local business community gives its backing – for example, to pay for a critical local transport project."
The government also confirmed the termination of Home Information Packs (HIPs), which have been suspended since the 21 May. It claimed that, on average, consumers saved £78 from obtaining the individual pieces of information during the process of buying or selling a home rather than paying for a pack.
