Under a proposed policy called the News Bargaining Incentive, companies would be taxed 2.25% of their local revenues if they do not reach agreements with publishers. The funds collected would then be redistributed to support Australian journalism.
Communications Minister Anika Wells said the move reflects changing media consumption trends, noting that many users now access news directly through social platforms and search engines.
Prime Minister Anthony Albanese defended the proposal, emphasising national sovereignty and stating that decisions would be made in Australia’s best interest despite potential international pressure, particularly from the United States.
The levy, expected to take effect from July 1, 2025–26 financial year, will apply to companies generating more than A$250 million annually in Australia. It specifically targets major digital platforms, while artificial intelligence services will be regulated separately.
The policy is designed to replace earlier 2021 legislation that required tech firms to pay for news content, which authorities now say has become ineffective. That earlier law had led to tensions, including a temporary news ban by Meta before it later signed agreements with media companies.
Australia’s leading media organisations, including Nine Entertainment, ABC, and News Corp Australia, have welcomed the proposal, calling it a crucial step toward sustaining journalism.
However, tech companies have strongly opposed the move. Meta argued the proposal misrepresents how news content appears on its platforms, while Google rejected the need for what it described as a tax. Critics also warn the policy could effectively create a government-managed subsidy system for media organisations.
The debate highlights growing global tensions over how digital platforms should compensate news producers in an evolving media landscape.
