Australia has passed legislation requiring major technology platforms to pay a 2.5 per cent levy on digital advertising revenue unless they strike commercial agreements with local news publishers.
The News Bargaining Incentive, approved by parliament on Thursday, applies to Meta, Alphabet’s Google, TikTok and Microsoft’s LinkedIn where their Australian advertising revenue exceeds A$250 million and they operate significant search or social media services. The government said the measure is intended to encourage platforms to support Australian journalism and compensate publishers whose content helps drive engagement and advertising.
Under the legislation, platforms can avoid the levy by reaching agreements with at least eight publishers before the end of their financial reporting period. Spending with large publishers receives a 150 per cent offset against the levy, while agreements with small and medium-sized outlets receive a 200 per cent offset, although no individual deal can account for more than 25 per cent of a platform’s liability.
Communications Minister Anika Wells said the government had prioritised the measure because it considered a viable news industry important to democracy. “Australia has long signalled news bargaining as a priority of our government … because we believe in a free press and it needs to be viable,” she told reporters in Canberra.
Assistant Treasurer Daniel Mulino said the legislation was designed to increase the number of commercial agreements between technology companies and publishers rather than simply collect tax revenue. “The message for platforms is simple: do fair deals now,” he told parliament.
The scheme increases the distribution loading for regional journalists, small and medium-sized publishers and media organisations serving under-represented communities from 10 per cent to 20 per cent. Australian Associated Press has been allocated five per cent of revenue collected through the scheme.
Americans for Tax Reform, a US advocacy group allied with President Donald Trump, criticised the measure and called on the administration to consider higher tariffs on Australian exports. The group described the policy as a “shakedown” and argued that Canberra was intervening in negotiations between technology companies and publishers.
The criticism comes as the US has imposed a 12.5 per cent tariff on Australian exports, up from an initial 10 per cent rate. Wells said she was confident the new legislation would not lead to higher US tariffs, citing the relationship between Prime Minister Anthony Albanese and Trump.
Meta has previously declined to renew agreements with Australian media companies after existing deals expired, while the new legislation provides platforms with a financial incentive to reach replacement agreements. The measures were passed a day after parliament approved separate restrictions on gambling advertising.
