The federal government will unveil plans to introduce a so-called "Google tax" as part of measures to crack down on multinational tax avoidance.
A diverted profits tax, like one in the UK, will be announced in Tuesday night's budget, Fairfax Media reports.
A new unit within the Australian Taxation Office will be given more resources and there will be stronger protections for whistleblowers.
Greens MP Adam Bandt welcomed the proposed crackdown, but said any money raised should be put into schools and hospitals and not tax cuts for companies and those on above-average wages.
"The government seems intent on this unsustainable and unaffordable money-go-round," he told reporters in Canberra on Tuesday.
Independent senator Nick Xenophon said the extra revenue from the likes of Google and Apple meant less would have to come from mums, dads and pensioners - "so obviously that is welcome".
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