Blab Tech
Australia Enacts 2.5% Levy on Tech Giants to Fund Local News
On 20 August 2026, Australia’s federal parliament approved the News Bargaining Incentive (NBI), a new levy that will tax the advertising revenue of major digital platforms that refuse to strike commercial deals with local news publishers.
The NBI imposes a 2.5 % fee on any platform that operates a significant social‑media or search service in Australia and earns more than A$250 million in local advertising revenue, unless it signs agreements with at least eight Australian news outlets. The four companies that fall under the scheme are Meta (Facebook, Instagram, WhatsApp), Alphabet’s Google, TikTok, and Microsoft’s LinkedIn.
Platforms can offset the levy by spending on news contracts. Deals with large publishers grant a 150 % offset, while contracts with small or medium‑sized outlets yield a 200 % offset. No single agreement may cover more than 25 % of a platform’s liability, and all arrangements must be finalised before the end of the platform’s financial reporting period.
The legislation is part of the Albanese government’s broader effort to shore up Australian journalism. The NBI follows the earlier News Media Bargaining Code, which required large platforms to pay fees to news publishers if negotiations failed. That Code had not named any platform as of November 2024, and the NBI is the first statutory mechanism to impose a direct levy.
The bill emerged after a period of intense debate. Meta publicly opposed the scheme, calling it poorly designed and unfair, and had already withdrawn from a 2021 agreement and shut down its Facebook News services in Australia in 2024. TikTok and Google have yet to issue formal statements, but analysts note that the new offsets and caps may shape how the platforms structure future deals.
Under the NBI, the levy proceeds are earmarked for local Australian news outlets. The government said the funds would support content that “drives user engagement and advertising revenue” on the platforms. If platforms fail to comply, the law could generate millions of dollars in levies, creating a new revenue stream for Australian news organisations.
The law was enacted on 20 August, one day after parliament passed legislation restricting gambling advertisements. The timing underscores the government’s focus on regulating digital advertising and protecting public‑interest content.
Industry observers warn that the NBI could reshape the economics of digital advertising in Australia. Platforms may accelerate negotiations with news publishers to avoid the levy, potentially sparking a wave of new commercial agreements. The offsets for spending on small and medium‑sized outlets could also encourage diversification of publisher portfolios.
The NBI’s impact on the platforms’ financial statements will become apparent in the next reporting cycle. Companies will need to disclose their advertising revenue, the number of publishers they have agreements with, and the amount of offset applied. The Australian Competition and Consumer Commission will monitor compliance, and the Treasury will oversee the distribution of levy proceeds to news outlets.
At present, no platform has confirmed whether it will enter into the required agreements. The law remains in force, and platforms that fail to comply by the end of their reporting period will face the levy. The Australian government has indicated that it will enforce the scheme and will not allow platforms to use the levy as a loophole.
The NBI represents a significant regulatory step for the Australian media landscape. It introduces a direct financial link between digital advertising revenue and local news funding, a model that has been discussed internationally but not yet implemented in statutory form. The law’s effectiveness will be measured by the amount of levies collected, the number of new publisher agreements, and the financial health of Australian news organisations in the coming years.
The NBI imposes a 2.5 % fee on any platform that operates a significant social‑media or search service in Australia and earns more than A$250 million in local advertising revenue, unless it signs agreements with at least eight Australian news outlets. The four companies that fall under the scheme are Meta (Facebook, Instagram, WhatsApp), Alphabet’s Google, TikTok, and Microsoft’s LinkedIn.
Platforms can offset the levy by spending on news contracts. Deals with large publishers grant a 150 % offset, while contracts with small or medium‑sized outlets yield a 200 % offset. No single agreement may cover more than 25 % of a platform’s liability, and all arrangements must be finalised before the end of the platform’s financial reporting period.
The legislation is part of the Albanese government’s broader effort to shore up Australian journalism. The NBI follows the earlier News Media Bargaining Code, which required large platforms to pay fees to news publishers if negotiations failed. That Code had not named any platform as of November 2024, and the NBI is the first statutory mechanism to impose a direct levy.
The bill emerged after a period of intense debate. Meta publicly opposed the scheme, calling it poorly designed and unfair, and had already withdrawn from a 2021 agreement and shut down its Facebook News services in Australia in 2024. TikTok and Google have yet to issue formal statements, but analysts note that the new offsets and caps may shape how the platforms structure future deals.
Under the NBI, the levy proceeds are earmarked for local Australian news outlets. The government said the funds would support content that “drives user engagement and advertising revenue” on the platforms. If platforms fail to comply, the law could generate millions of dollars in levies, creating a new revenue stream for Australian news organisations.
The law was enacted on 20 August, one day after parliament passed legislation restricting gambling advertisements. The timing underscores the government’s focus on regulating digital advertising and protecting public‑interest content.
Industry observers warn that the NBI could reshape the economics of digital advertising in Australia. Platforms may accelerate negotiations with news publishers to avoid the levy, potentially sparking a wave of new commercial agreements. The offsets for spending on small and medium‑sized outlets could also encourage diversification of publisher portfolios.
The NBI’s impact on the platforms’ financial statements will become apparent in the next reporting cycle. Companies will need to disclose their advertising revenue, the number of publishers they have agreements with, and the amount of offset applied. The Australian Competition and Consumer Commission will monitor compliance, and the Treasury will oversee the distribution of levy proceeds to news outlets.
At present, no platform has confirmed whether it will enter into the required agreements. The law remains in force, and platforms that fail to comply by the end of their reporting period will face the levy. The Australian government has indicated that it will enforce the scheme and will not allow platforms to use the levy as a loophole.
The NBI represents a significant regulatory step for the Australian media landscape. It introduces a direct financial link between digital advertising revenue and local news funding, a model that has been discussed internationally but not yet implemented in statutory form. The law’s effectiveness will be measured by the amount of levies collected, the number of new publisher agreements, and the financial health of Australian news organisations in the coming years.
