Small and family enterprises are at risk of being left behind as the 'fifth pillar' debate focuses too narrowly on home owners and credit unions, according to Australia's leading tax and property accountants.

The comments come as a battle looms between credit unions and the big banks while the Gillard Government prepares measures to establish a fifth pillar for the banking sector.

Australia has had an oligopoly of four major banks since late 2008, when Treasurer Wayne Swan allowed the merger of Westpac and St George.

National accounting firm Chan & Naylor said the federal government needs to consider SMEs when developing new lending reforms to relieve pressure of further rate rises.

"Although we welcome the active steps taken by the Federal Government to boost competition in the banking sector and put downward pressure on home loans, very little is being done to support small businesses," said Chan and Naylor chief executive Sal Carrero.

He said that with the 'fifth pillar' debate focused too narrowly on home owners and credit unions, small and family enterprises are at risk of being left behind.

"Access to funds needs to be made simpler for small businesses and sole traders who continue to face compounding rate hikes while experiencing slower trading conditions and diminishing profitability."

Mr Carrero said the cost of bank loans for SMEs has risen significantly higher than the costs of personal mortgages further hurting small businesses who continue to battle the financial hardships caused by the GFC.

"Increased competition in the banking sector may help to marginally reduce the stringent conditions on lending across the board but the government must commit to help reduce unnecessary costs and support the important SME sector."