Source: www.News.com.au

Big business is the target of a crackdown on so-called tax loopholes that is expected to deliver $4 billion in budget savings.

Multinationals, banks and miners were named as culprits in Tuesday's budget for practices that were eroding the government's tax receipts.

The government's changes will prevent foreign multinationals artificially loading debt into their Australian operations and claiming tax deductions.

The government will also make it more difficult for miners to claim up-front tax deductions on exploration work that they never carried out, when the discovery was made by another miner that has sold them the rights.

Foreign miners and other investors are also being targeted for not paying foreign resident capital gains tax, by taking 10 per cent of the sale proceeds from the purchaser of Australian property.

Other targets included banks shifting income offshore to reduce tax and sophisticated investors carrying out 'dividend washing', or repeatedly claiming tax benefits on dividend payouts.

Mr Swan denied that big business was a soft target in his government's efforts to make budget savings, saying he supported an economy with strong demand, profitable businesses and Australians in work.

Those areas targeted were being abused, he said. Treasury said the crackdown would save just more than $4 billion over four year, and ensure stable revenue to fund vital investments in Australia.

"If some taxpayers do not pay their fair share of tax, a higher tax burden will fall on Australian families and small businesses,'' it said.

A $17 billion write down in expected tax receipts over the 2012/13 financial year has been a major hit to the budget's bottom line.