'Enough is enough' tax avoiding firms told

Treasurer Scott Morrison has introduced draft laws that will impose a tax on diverted profits by multinational companies.

Scott Morrison has introduced draft laws to impose a tax on diverted profits by multinationals. (AAP)

Multinational companies will be stung with a 40 per cent penalty if found avoiding taxes in Australia.

Treasurer Scott Morrison on Thursday introduced to parliament legislation for a diverted profits tax aimed at big businesses found shifting profits to other countries with low-tax regimes to avoid obligations in Australia.

"The Turnbull government has said enough is enough when it comes to multinationals diverting profits offshore," he told MPs on Tuesday.

The new penalty will apply to multinationals with a global income of more than $1 billion and Australian income of more than $25 million.

The bill was flagged in the May budget and is expected to raise $100 million a year from 2018/19.

That's in addition to about $3.7 billion resulting from measures to tackle tax avoidance already introduced by the government, which Mr Morrison insists are the toughest in the world.

"The Turnbull government is ensuring Australian taxpayers do not get dudded by multinationals," he said.