Australia has unveiled a new legislative push that could force global technology giants, including Meta, Google and TikTok, to pay local news publishers or face a levy on their Australian revenues.
The proposal, known as the News Bargaining Incentive, would impose a 2.25 per cent charge on major digital platforms that fail to reach commercial agreements with Australian media organisations.
The proceeds would be redirected to news companies to support journalism, rather than retained by the government.
The draft legislation marks Australia’s latest attempt to compel powerful online platforms to compensate news outlets for content that helps drive traffic, engagement and advertising value on their services.
Under the proposed model, companies such as Meta, Google and TikTok would be able to avoid the levy by striking payment deals directly with publishers.
Reports said the companies could receive offsets of 150 per cent to 170 per cent against their liability, with stronger incentives for deals involving smaller media outlets.
Prime Minister Anthony Albanese said the policy was intended to ensure that technology platforms make a fair contribution to public interest journalism.
Communications Minister Anika Wells also argued that digital platforms benefit from news content and should help sustain the media ecosystem that produces it.
The move follows years of tension between Australia and Big Tech over media payments. In 2021, Australia introduced the News Media Bargaining Code, which pushed Google and Facebook into commercial deals with publishers. However, the government says that framework has weakened, particularly after Meta declined to renew previous agreements with Australian media companies.
The new plan is therefore designed as a tougher “pay or be charged” system. Platforms with major operations in Australia and annual local revenues above A$250 million are expected to fall within the scope of the scheme.
The government says the aim is not simply to raise tax revenue but to push platforms back into direct bargaining with publishers.
The proposal has already drawn resistance from the technology sector. Meta has rejected the government’s position, arguing that it does not derive the kind of value from news content claimed by policymakers.
Google has also criticised aspects of the plan, while pointing to its existing partnerships with Australian publishers. TikTok has not made a detailed public response.
Australian media organisations, however, have welcomed the initiative, saying it is necessary to protect journalism at a time when digital platforms dominate online advertising markets and newsrooms face shrinking revenues.
The legislation is expected to face close scrutiny when introduced to parliament, with observers warning that it could also trigger diplomatic pressure from the United States, where many of the affected technology companies are headquartered.
