Australia Moves to Make Tech Platforms Fund Local News, Threatens Revenue Levy

The federal government introduced draft legislation on Tuesday that would force major online platforms to compensate Australian news outlets or face a levy on their domestic takings. Under the News Bargaining Incentive, companies such as Meta, Google and TikTok would be charged roughly nine quarters of one percent of their Australian revenue unless they reach commercial agreements with publishers; striking more deals would cut that charge to one and a half percent. Officials estimate the mechanism could redirect about A$200 million to A$250 million annually into Australian journalism if a sufficient number of contracts are signed. Platforms would have until July to comply if the measure becomes law.

The proposal is Canberra’s second major push to make Silicon Valley pay for news. A 2021 code already forced talks between tech firms and media groups but left a loophole: companies could simply stop carrying news and thereby sidestep payments. That is what happened in 2024 when a major social network removed Australian news feeds, a move that industry sources say contributed to a string of layoffs across newsrooms. The new draft is explicitly designed so the levy applies regardless of whether a service displays news content, closing the earlier escape hatch.

The NBI also broadens the policy reach. It explicitly adds short-form video platforms that were not covered by the original code, while excluding artificial intelligence tools from this particular rule set; government officials say AI is being handled through separate copyright and regulatory workstreams. The draft allows publishers and platforms to negotiate commercial terms, with the government stepping in only to collect the levy if those private deals are not struck. Assistant Treasurer Daniel Mulino said the aim is to tilt incentives toward negotiation rather than avoidance.

Global reactions could complicate the plan. Washington has repeatedly objected to digital services taxes and has warned of punitive measures against countries that impose levies on American tech firms. Australia’s prime minister has pushed back, arguing national policy choices should reflect domestic priorities. Canberra faces a balancing act: protecting local newsrooms without triggering trade retaliation or driving platforms to change how their services operate here.

Other nations have tried similar steps with mixed outcomes. Canada’s law led a major platform to withdraw news entirely from its service; Brazil’s long-running effort has stalled in parliament; and EU rules exist but vary in enforcement among member states. South Africa offers a contrasting example: regulators there brokered direct agreements with several tech companies that, by government accounting, secured about US$40 million for local publishers over five years. Policy analysts say Australia’s model is notable for removing the option to escape by cutting content, but they differ on whether that will prompt more negotiated payments or fresh platform responses.

Industry players contacted for comment had not replied by publication. Media scholars and former newsroom executives welcomed the government’s renewed effort but voiced caution. “This is intended to stabilise the market for original reporting by creating a predictable revenue stream,” said Dr. Emma Clarke, a media policy researcher at the University of Sydney. Another analyst warned platforms may still alter product features or legal strategies to blunt the financial impact, meaning the real test will be how both sides behave in the months before July.