Multinational groups look set to avoid a string of cuts to research and development tax breaks expected to earn the government $1 billion, according to The Australian.
Labor is currently planning to take away the research and development concessions for companies with an Australian turnover of $20 billion.
However, according to The Aus, the revenues of multinationals will not be taken into account under the rules, meaning many big overseas firms will keep the concession.
The revelation comes despite claims from Labor about promoting Australian industry and cracking down on global firms avoiding tax payments.
A spokesman for the office of industry and innovation minister Greg Combet said the breaks were an important part of attracting large innovating multinationals to Australia.
"This government is targeting assistance to where it will deliver the greatest innovation and foster the most research and development," the spokesman said.