Australia Mandates Big Tech to Compensate News Publishers or Face 2.25% Revenue Tax
In a decisive move to support its journalism industry, the Australian government has introduced draft legislation compelling major technology companies—namely Meta, Google, and TikTok—to remunerate local news publishers for the content they aggregate or share. Failure to comply will result in a 2.25% levy on their Australian revenues.
Communications Minister Anika Wells highlighted the evolving landscape of news consumption, stating, People are increasingly getting their news directly from Facebook, from TikTok, and from Google. This shift underscores the necessity for these platforms to contribute financially to the news content that drives user engagement on their services.
The proposed legislation, termed the News Bargaining Incentive (NBI), is structured to encourage these tech giants to establish commercial agreements with local news organizations. The more partnerships they form, the lower their tax obligation becomes. Achieving a sufficient number of deals could reduce the effective tax rate to 1.5%, potentially channeling between A$200 million and A$250 million back into Australian journalism.
Prime Minister Anthony Albanese emphasized the critical role of journalists, remarking, Journalists are the lifeblood of Australia’s media sector, playing a vital role in keeping communities informed about the news that matters to them.
This initiative marks Australia’s second attempt to ensure that Big Tech contributes to the funding of journalism. The initial effort, the News Media Bargaining Code enacted in 2021, mandated platforms like Google and Meta to compensate news publishers. However, a significant loophole allowed these companies to evade payments by simply removing news content from their platforms. Meta exercised this option in 2024, leading to widespread job losses across Australian newsrooms.
The NBI aims to rectify this gap by imposing the tax regardless of whether these platforms host news content, thereby eliminating any potential for avoidance. The inclusion of TikTok in this legislation represents a notable expansion from the previous code. Additionally, the draft explicitly excludes artificial intelligence services. Assistant Treasurer Daniel Mulino clarified that AI is not included in the scope of this measure as it is currently under review through other policy forums, including work on copyright led by the Attorney-General.
The Australian government’s firm stance may invite international scrutiny, particularly from the United States, which has historically opposed digital services taxes targeting American tech companies. When questioned about potential pushback from the White House, Prime Minister Albanese asserted, We’re a sovereign nation, and my Government will make decisions based upon the Australian national interest. We do that right across the board.
If the legislation passes, the affected platforms will have until July to comply, coinciding with the commencement of the levy.
Australia’s approach is part of a broader global effort to hold Big Tech accountable for their role in the dissemination of news. Countries like Canada, Brazil, and members of the European Union have pursued similar measures with varying degrees of success. For instance, Canada’s 2023 law led Meta to remove news content from its platform entirely, while Brazil’s proposed legislation has been stalled since 2019. The European Union has established rules, but enforcement varies widely among member states. South Africa offers a potential model, having brokered direct deals with companies like Google, Meta, TikTok, and Microsoft, securing approximately $40 million for local news outlets over five years.
As of now, Meta, Google, and TikTok have not responded to requests for comment regarding Australia’s proposed legislation.
