The Australian government has announced plans for a levy on tech giants designed to incentivise them to do commercial deals with publishers.
The News Bargaining Incentive (NBI) would require large search and social media services to pay 2.25% on their Australian revenue.
This money would be “distributed back to the news media sector”, the government said, to “support the employment and critical work of journalists”.
If this formula was adopted in the UK, Google and Meta alone would be paying £650 million towards supporting the news industry (per Press Gazette’s revenue estimates).
Tech companies can offset the levy by entering commercial agreements with Australian news media businesses for the use or production of news content. Deals are the “preferred model”, the government said.
A higher amount (170%) of the potential levy will be offset if deals are made with small to medium news publishers, versus 150% offset for agreements with large news businesses. So making commercial deals could elimate the need to pay the levy altogether.
The legislation would be applicable to tech giants with revenue above $250m from Australia. This includes Google, Meta and Tiktok.
The proposal is designed to address a loophole in Australia’s existing News Media Bargaining Code, which was intended to force the likes of Google and Meta to pay for news on their platforms.
In 2024 Meta closed the Facebook News tab in Australia (as well as the US) and did not renew licensing agreements it had with news publishers. Meta also previously experimented with removing all news from Facebook and Instagram in the country.
Google does already have existing commercial agreements with news publishers in Australia.
A coalition of news leaders put out a joint statement backing the draft legislation, calling it a “critical step toward securing the future of Australian news”.
They said: “The vibrancy of Australian democracy relies on the robust and open exchange of news, views and opinions. This is under threat.
“If digital platforms fail to pay for the use of the news content from which they profit then journalism becomes unsustainable.
“It is also in the public interest that reliable, professionally created news and information remains accessible and visible on the digital platforms used by millions of Australians…
“By prioritising commercial deals this legislation protects our democratic way of life. It has been more than two years since Meta walked away from previous deals and almost 18 months since the government announced the NBI.
“While Google has been positive about doing deals, others need to come to the table, and all platforms need to step up. We urge all parliamentarians to support safeguarding Australian journalism and the vital role it plays in our democracy, for all Australians.”
The statement was signed by:
- Hugh Marks, managing director ABC
- Michael Miller, executive chairman News Corp Australasia
- Beverley McGarvey, president Network Ten
- Rohan Lund, CEO and managing director Southern Cross Media Group
- Tony Kendall, managing director Australian Community Media
- Matt Stanton, CEO and managing director Nine Entertainment Co
- Jane Palfreyman, acting managing director SBS
- Rebecca Costello, managing director The Guardian Australia
Australian prime minister Anthony Albanese said: “Journalists are the lifeblood of Australia’s media sector, playing a vital role in keeping communities informed about the news that matters to them.
“Local news matters to local communities and these stories can’t be told without Australian journalists.
“My Government will always back Australian journalists and Australian news.”
Google and Meta oppose draft news levy
Google and Meta opposed the need for the NBI.
A Google spokesperson said: “While we are currently reviewing the draft legislation, we have been clear: we reject the need for this tax.”
They added that it “misunderstands how the ad market has changed, and mandates payments from some companies while arbitrarily excluding platforms like Microsoft, Snapchat and OpenAI, despite the major shift in how people consume news”.
A Meta spokesperson said: “A government-mandated transfer of wealth from one industry to another, with no connection to the value exchanged, will not deliver a sustainable or innovative news sector.”
A consultation on the draft legislation, including how any money raised should be distributed to the news sector, is now open until 18 May.
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