The Australian government says it will crack down on multinational corporations that try to shift their profits offshore to avoid tax.
It is a key measure unveiled in last night’s Australian budget.
Treasurer Scott Morrison says companies caught shifting profits offshore without paying tax will penalised at a rate of 40 percent. That is higher than the standard tax rate of 30 percent.
The Australian Tax Office will get an extra 1,000 staff to target large companies and wealthy individuals who are trying to avoid tax.
The Budget was delivered as Australia prepares for an election on July 2.
It was a busy 24 hours for the Australian financial markets.
The Reserve Bank of Australia cut its Official Cash Rate to 1.75 percent.
That has seen the New Zealand dollar rise to 92.4 Australian cents.
