Blab Tech
Australia Raises Tech-Platform Levy to Boost News Funding, Requires More Publisher Deals
Australia has announced a set of changes to its News Media Bargaining Incentive that will raise the levy on large digital platforms and increase the number of commercial agreements they must strike with news organisations. The adjustments, revealed on Monday, are intended to redirect a larger share of advertising revenue to the domestic media sector.
Under the new rules, tech giants with domestic revenues of $250 million or more will face a maximum levy of 2.5 percent of their Australian advertising income, up from the earlier proposal of 2.25 percent. The levy will be calculated only on digital advertising revenue that can be attributed to the Australian market. If a platform signs the required number of deals, it will pay a smaller portion of its advertising revenue to the government than if it refuses to negotiate.
The incentive now requires platforms to secure at least six agreements with publishers, compared with the four deals that were previously mandated. Approved agreements with large media companies allow a platform to offset 150 percent of its liability, while deals with smaller firms provide a 200 percent offset – an increase from the 170 percent offset that applied under earlier plans.
Assistant Treasurer Daniel Mulino said the government had acted in good faith during the consultation period. “Australian journalism is important to a well‑functioning democracy and we want it to be sustainable now and into the future,” Mulino told reporters. “We want digital platforms to do deals with a diverse range of media organisations.”
The changes also remove a carve‑out that would have exempted LinkedIn, a professional networking platform, from the levy. The removal follows criticism from tech firms that earlier drafts of the law represented a “government‑mandated transfer of wealth from one industry to another.”
The incentive is part of the broader News Media Bargaining Code, which was first introduced in 2021 to require large platforms to negotiate with news publishers or face mandatory fees. The code has been a focal point for debates about the balance of power between digital platforms and traditional media.
Labor ministers hope to bring the revised incentive into law when parliament reconvenes in the spring. If enacted, the policy will obligate platforms such as Google, Meta and TikTok to negotiate commercial arrangements for the use of news content on their services.
The levy is designed to redistribute funds to the media sector, with the government earmarking the collected revenue for journalism support. The policy shift reflects a continued effort by Australian authorities to address the financial pressures faced by news organisations in the digital age.
The new rules are expected to increase the number of paid agreements between platforms and publishers, potentially changing the economics of news distribution in Australia. Platforms that fail to meet the deal‑making threshold will be subject to the full 2.5 percent levy on their Australian advertising revenue.
The policy shift comes amid ongoing discussions about digital advertising taxation and the role of large tech companies in funding local media. While the government has not yet provided a detailed timetable for implementation, the announcement signals a decisive move to strengthen the financial sustainability of Australian news outlets.
As the legislation moves forward, stakeholders will monitor how the increased levy and deal requirements affect the relationship between digital platforms and news publishers, and whether the additional funding will translate into measurable support for Australian journalism.
Under the new rules, tech giants with domestic revenues of $250 million or more will face a maximum levy of 2.5 percent of their Australian advertising income, up from the earlier proposal of 2.25 percent. The levy will be calculated only on digital advertising revenue that can be attributed to the Australian market. If a platform signs the required number of deals, it will pay a smaller portion of its advertising revenue to the government than if it refuses to negotiate.
The incentive now requires platforms to secure at least six agreements with publishers, compared with the four deals that were previously mandated. Approved agreements with large media companies allow a platform to offset 150 percent of its liability, while deals with smaller firms provide a 200 percent offset – an increase from the 170 percent offset that applied under earlier plans.
Assistant Treasurer Daniel Mulino said the government had acted in good faith during the consultation period. “Australian journalism is important to a well‑functioning democracy and we want it to be sustainable now and into the future,” Mulino told reporters. “We want digital platforms to do deals with a diverse range of media organisations.”
The changes also remove a carve‑out that would have exempted LinkedIn, a professional networking platform, from the levy. The removal follows criticism from tech firms that earlier drafts of the law represented a “government‑mandated transfer of wealth from one industry to another.”
The incentive is part of the broader News Media Bargaining Code, which was first introduced in 2021 to require large platforms to negotiate with news publishers or face mandatory fees. The code has been a focal point for debates about the balance of power between digital platforms and traditional media.
Labor ministers hope to bring the revised incentive into law when parliament reconvenes in the spring. If enacted, the policy will obligate platforms such as Google, Meta and TikTok to negotiate commercial arrangements for the use of news content on their services.
The levy is designed to redistribute funds to the media sector, with the government earmarking the collected revenue for journalism support. The policy shift reflects a continued effort by Australian authorities to address the financial pressures faced by news organisations in the digital age.
The new rules are expected to increase the number of paid agreements between platforms and publishers, potentially changing the economics of news distribution in Australia. Platforms that fail to meet the deal‑making threshold will be subject to the full 2.5 percent levy on their Australian advertising revenue.
The policy shift comes amid ongoing discussions about digital advertising taxation and the role of large tech companies in funding local media. While the government has not yet provided a detailed timetable for implementation, the announcement signals a decisive move to strengthen the financial sustainability of Australian news outlets.
As the legislation moves forward, stakeholders will monitor how the increased levy and deal requirements affect the relationship between digital platforms and news publishers, and whether the additional funding will translate into measurable support for Australian journalism.
