Australia forces Big Tech firms to pay for news or face a 2.25% tax
Source: TechCrunch
Australia is getting serious about making Big Tech pay for news. The government unveiled draft legislation on Tuesday that would require companies like Meta, Google, and TikTok to pay for the journalism they aggregate or reshare, or face a levy on their local revenues.
Communications Minister Anika Wells said at a press conference that “people are increasingly getting their news directly from Facebook, from TikTok, and from Google.” 【source】(https://www.pm.gov.au/media/press-conference-parliament-house-canberra-51)
News Bargaining Incentive (NBI)
The proposed law, called the News Bargaining Incentive (NBI), would impose a 2.25 % levy on the Australian revenues of the three platforms unless they strike commercial deals with local news publishers.
- The more deals they make with media outlets, the lower the levy.
- If enough agreements are reached, the effective rate drops to 1.5 %, potentially generating A$200 million–A$250 million back into Australian journalism. 【source】(https://www.pm.gov.au/media/press-conference-parliament-house-canberra-51)
Prime Minister Anthony Albanese emphasized the importance of journalism, stating that “journalists are the lifeblood of Australia’s media sector, playing a vital role in keeping communities informed about the news that matters to them.”
Key points
| Aspect | Detail |
|---|---|
| Levy rate | 2.25 % (reduced to 1.5 % with sufficient deals) |
| Target platforms | Meta, Google, TikTok |
| Compliance deadline | Platforms have until July 2025 to comply, the same date the levy would start. |
| AI services | Explicitly excluded. Assistant Treasurer Daniel Mulino noted that AI is being examined through other policy forums, including copyright work led by the Attorney‑General. |
Background and previous attempts
Australia first introduced the News Media Bargaining Code in 2021, which required platforms like Google and Meta to pay news publishers. However, the original code had a loophole: companies could simply remove news content to avoid payment.
- In 2024, Meta pulled news from its platform in Australia, leading to widespread job cuts across Australian newsrooms. Details | Report on job cuts | Further coverage
The NBI is the government’s attempt to close that loophole. Unlike the 2021 code, the levy applies whether or not the platforms carry news, removing the previous workaround.
TikTok’s inclusion marks a notable expansion from the original code, while AI services remain outside the scope for now.
International context
Australia is not alone in confronting Big Tech over news payments:
- Canada – A 2023 law prompted Meta to pull news entirely from the platform.
- Brazil – A bill introduced in 2019 remains stuck in legislative limbo.
- European Union – Rules exist on the books, but enforcement varies widely.
- South Africa – Regulators brokered direct deals with Google, Meta, TikTok, and Microsoft, securing roughly $40 million for local news outlets over five years.
The United States, under the Trump administration, has consistently opposed digital services taxes on U.S. tech companies, threatening tariffs against countries that implement them. Most recent warning to the U.K.
When asked about the pushback from the White House, Albanese responded, “We’re a sovereign nation, and my Government will make decisions based upon the Australian national interest. We do that right across the board.” 【source】(https://www.pm.gov.au/media/press-conference-parliament-house-canberra-51)