The Australian Financial Journal says the Government is considering offering gifts to foreign investors in the construction sector, including those from China.
The newspaper says it is in talks with Chinese investors in Australia’s construction industry to provide financial support for projects.
The proposed gift is valued at up to $1 billion.
The paper said the proposal follows an agreement to provide support to Chinese construction projects by the Government.
Foreign investors have long complained about Australia’s poor record on giving overseas investment to Australia.
The Australian Government has repeatedly insisted that it is the only country in the world that offers full tax benefits to Chinese investment, which is an argument many foreign investors have also made.
China is Australia’s largest trading partner and Australia has long been an investor in China.
China has long enjoyed an almost exclusive economic relationship with Australia, despite its ties to China.
Foreign investment in Australia was a key issue during the federal election campaign, with Mr Abbott’s Liberal Party promising to increase the flow of foreign investment to the country.
The Government announced in September it would make it easier for foreign investment in infrastructure projects in Australia.
It said foreign direct investment would be subject to a range of rules.
But some foreign investors were disappointed by the announcement, and the ABC reported some foreign investment had already left Australia in recent months.
The Government’s announcement comes just a few months after the Chinese Embassy in Canberra announced it was seeking a loan of up to A$200 million ($161 million) to build a $15 million office block in the CBD.