Australia Takes Aim at Big Tech with New News Levy
"Journalists are the lifeblood of Australia’s media sector, playing a vital role in keeping communities informed about the news that matters to them," Prime Minister Anthony Albanese said in a statement.
The Proposed Levy: A 2.25% Tax on Big Tech
The Australian government has unveiled a draft legislation that would impose a 2.25% levy on the revenues of Meta, Google, and TikTok in the country. The levy would be applied unless these companies strike commercial deals with local news publishers, effectively paying for the journalism they aggregate or reshare.
The proposed law, called the News Bargaining Incentive (NBI), would provide a clear incentive for Big Tech to negotiate with Australian news outlets. The more deals they make, the less they pay. If enough agreements go through, the effective rate drops to 1.5%, which could generate between A$200 million and A$250 million back into Australian journalism.
The Flaw in the Original Law
The Australian government's first attempt to force Big Tech to fund journalism, the News Media Bargaining Code, had a flaw that allowed companies to avoid paying by removing news from their platforms. Meta took advantage of this loophole in 2024, leaving a gap in the country's media rules.
The NBI: A New Approach
The NBI is designed to fix this flaw, making it clear that Big Tech companies will be taxed regardless of whether they carry news or not. This time, there's no workaround.
Platforms get taxed whether they carry news or not. The Albanese government first announced the NBI in December 2024 as a replacement for the existing 2021 Code, and the draft legislation finally landed today.
Global Context
Australia isn't alone in this fight. Canada, Brazil, and the EU have all taken on Big Tech over news, with mixed results. Canada's 2023 law prompted Meta to pull news from its platform entirely. Brazil's bill has been stuck in legislative limbo since 2019. The EU has rules on the books, but enforcement varies widely.
South Africa may offer the clearest blueprint; regulators there brokered direct deals with Google, Meta, TikTok, and Microsoft, securing roughly $40 million for local news outlets over five years.
What's Next?
If passed, platforms will have until July to comply, the same date the levy kicks in. Meta, Google, and TikTok did not immediately respond to requests for comment.