Treasurer Scott Morrison`s first budget doubles as the government`s pitch to voters at an early election slated for 2 July.
The government is seeking to raise additional revenue to pay for tax cuts.
"Everyone has to pay their fair share of tax, especially large corporates and multinationals," Mr Morrison said during his address to parliament.
Multinational firms that shift profits offshore will be taxed at a penalty rate of 40% under a diverted profits tax, similar to the so-called "Google tax" introduced in the UK last year.
The Australian Tax Office will get a 1,000-person strong team of tax avoidance specialists who will target large companies and wealthy individuals avoiding tax.
With major reform off the table, Scott Morrison needed to find a way to pay for his tax cuts while not blowing out the budget deficit. And he needed to do it without upsetting ordinary Australians who could vote the government out at an early election on 2 July.
Tax-averse corporate giants and tobacco companies are about as politically safe as targets get. Almost every measure in this budget puts political safety before risky reform. In fact, the biggest risk may be that voters view it as too middling and conservative.
The treasurer`s raid on the superannuation (retirement savings) of wealthy retirees may lose the coalition some votes, but affects a very small percentage of the population.
Mr Morrison has stuck to his promise to avoid electoral bribes such as large across-the-board tax cuts. Instead he is emphasising his government`s credentials as a responsible fiscal manager.
We`ll know in two months whether his boring-but-safe fiscal pitch has resonated with the Australian public.
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