Treasurer heading to Japan for G20 meeting

Treasurer Josh Frydenberg plans to discuss trade tensions between the US and China and the "delicate" global economic environment when he meets with finance chiefs later this week.

Mr Frydenberg is also preparing to talk about multinational tax avoidance when he joins finance ministers and central bank governors at the G20 meeting in Japan.

"We'll be seeking in those discussions to understand some of the trade issues that you've seen develop globally which are creating uncertainty, which have impacted trading volumes," he told reporters on Tuesday.

"And to better understand how some of the other countries are dealing with the economic challenges that they are facing."

The treasurer spoke after the Reserve Bank sliced the official cash rate to an historic low of 1.25 per cent.

"Many of the other countries within the G20 are also dealing with low domestic inflation environments," Mr Frydenberg said.

"It will be interesting to have a discussion around global trade tensions, the impact of Brexit, and of course to exchange notes on what is happening in our own domestic economies."

The treasurer also wants to tackle multinational tax dodgers and the impact of the digital economy.