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Australia’s federal government has introduced a new measure to incentivize big tech companies to engage with news publishers, unveiling the “News Bargaining Incentive.”
The Australian Tax Office has introduced the levy targeting digital platforms. Companies that establish or renew agreements to pay news publishers for their content can offset the levy. However, platforms that choose not to negotiate with publishers will still be required to pay the levy, regardless of whether they host news content.
The decision follows Australia’s 2021 law which forces tech giants like Meta and Google to compensate publishers for news hosted on their platforms. Earlier this year, Meta, the parent company of Facebook and Instagram, announced it would not renew its payment agreements with Australian news organizations, setting up a standoff with lawmakers.
What is the News Bargaining Incentive?
Under the new rules, announced on Thursday (Dec. 12), companies with annual revenues exceeding A$250 million ($160 million) must enter into commercial deals with media organizations or face increased taxation. This policy aims to reinforce compliance or risk being hit with higher taxes.
Today my colleague @MRowlandMP and I announced the Government's News Bargaining Incentive.
Put simply, if digital platforms continue to support Australian journalism through commercial deals, they can access a generous reduction in their liability. #auspol
— Stephen Jones MP (@StephenJonesMP) December 12, 2024
In a statement, Assistant Treasurer Stephen Jones said: “The Government wants Australians to continue to have access to quality news content on digital platforms.
“This approach strengthens the existing code by addressing loopholes that could see platforms circumvent their responsibility to pay.”
Communications Minister Michelle Rowland added: “Large digital platforms have an important role to play in providing access to news for all Australians, and contributing to the sustainability of public interest journalism.”
A Meta spokesperson accused the government of “charging one industry to subsidise another.”
The previous News Media Bargaining Code allowed news organizations to strike commercial deals with tech giants like Facebook and Google, requiring these companies to pour millions into supporting local digital content.
Leveling the playing field with tech firms
The goal was to level the playing field between publishers and tech platforms, addressing what the government called a “power imbalance” and helping traditional media recover from the revenue hit caused by the shift to digital platforms.
But as ReadWrite reported, those agreements were nearing their expiration, and Meta made it clear it wouldn’t renew them. That decision left Australian publishers staring at a hefty A$200 million revenue loss.
Instead of continuing the partnerships, Meta announced it would phase out the dedicated news tab on Facebook in Australia—a feature that highlighted news articles—and redirect the funds to other areas.
However, the announcement sparked a sharp reaction from Prime Minister Anthony Albanese’s government, calling Meta’s decision “a fundamental dereliction” of its “responsibility to its Australian users.”
The government will consult stakeholders on the final design of the scheme and a public consultation paper is expected to be released in early 2025.
ReadWrite has reached out to Meta for comment.
Featured image: Canva
