Australia Pushes New Tax on Meta, Google and TikTok

The Australian government has introduced draft legislation designed to compel major digital platforms to financially support local journalism. The proposed News Bargaining Incentive (NBI) targets companies including Meta, Google, and TikTok, mandating that they either strike commercial deals with news publishers or pay a 2.25% levy on their Australian revenue.

This initiative represents a significant escalation in the government’s strategy to ensure that technology giants contribute to the media sector. Communications minister Anika Wells emphasized the shift in consumption habits, noting that audiences are increasingly relying on platforms like Facebook, TikTok, and Google as their primary sources for news content.

The NBI replaces the 2021 News Media Bargaining Code, which proved ineffective when Meta opted to remove news content from its platforms in 2024 to avoid payment obligations. The new proposal aims to close that loophole by applying the tax regardless of whether a platform hosts news content or not.

How the News Bargaining Incentive Works

• Tiered Levy: The 2.25% tax rate serves as a baseline. The rate can decrease to an effective 1.5% as companies finalize more commercial agreements with local media outlets.
• Funding Goals: The government estimates this structure could funnel between A$200 million and A$250 million back into the Australian journalism industry.
• Timeline: If the legislation is enacted, platforms are expected to comply by July, which is when the levy is scheduled to take effect.

Prime Minister Anthony Albanese defended the move, describing journalists as the “lifeblood” of the country’s media sector. Addressing potential friction with the U.S. government—which has historically opposed digital services taxes—Albanese stated, “We’re a sovereign nation, and my Government will make decisions based upon the Australian national interest.”

Industry Pushback

The tech industry has responded with sharp criticism. Meta’s VP of Communication, Andy Stone, stated on X that the proposal is “nothing more than a digital service tax.” Stone argued that news organizations post to Meta’s platforms by choice and that the levy is punitive because it applies even in the absence of news content.

Google also challenged the necessity of the measure. A company spokesperson noted that Google currently maintains commercial agreements with more than 90 news businesses and 226 outlets across the country. The company criticized the draft for ignoring existing partnerships and for arbitrarily excluding platforms like Microsoft and Snapchat.

While the NBI marks an expansion in scope by including TikTok, the government has explicitly excluded AI services from this specific measure. Assistant treasurer Daniel Mulino explained that AI-related copyright and policy concerns are currently being addressed through separate government forums.

Australia’s approach follows a global trend of legislative attempts to regulate Big Tech’s relationship with the news media. While countries like Canada, Brazil, and members of the EU have navigated similar challenges with varying levels of success, South Africa has seen more direct results through negotiated settlements between regulators and tech firms.