Australia Proposes New Tax on Digital Giants to Fund Journalism
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The Australian government has released draft legislation for a new tax on major digital platforms like Meta, Google, and TikTok. The proposed News Bargaining Incentive would charge a 2.25% tax on their Australian revenue if they do not strike commercial deals with news publishers, with the funds distributed to news organizations based on journalist headcount. The government aims to introduce the legislation to Parliament by July 2.
Facts First
- A draft tax on digital platforms has been released, targeting Meta, Google, and TikTok.
- A 2.25% levy on Australian revenue would apply if platforms choose not to pay publishers for news.
- The government expects to raise 200-250 million AUD annually, funds to be distributed based on journalist employment.
- This is Australia's second legislative attempt to require platforms to pay for news content.
- Platforms previously avoided renewing deals under a 2021 law by removing news from their services.
What Happened
The Australian government released draft legislation on April 28, 2026, proposing a new tax on major digital platforms. The proposed News Bargaining Incentive (NBI) would charge Meta, Google, and TikTok a 2.25% tax on their Australian revenue if they choose not to strike commercial deals with news publishers. The government stated platforms would receive offsets and lower overall costs if they agree to pay publishers. Communication Minister Anika Wells stated the government intends to introduce the draft legislation to Parliament by July 2.
Why this Matters to You
This policy could affect the news you see online. If platforms pay for journalism, it may help sustain the Australian news organizations you rely on for local reporting. The government plans to distribute the tax income among news organizations based on the number of journalists they employ, which could incentivize hiring and support more journalism jobs. If platforms choose to pay the tax instead of making deals, the resulting funds may be redistributed to support public interest reporting.
What's Next
The government's next step is to introduce the draft legislation to Parliament by July 2. The targeted platforms, all American companies, may now engage in negotiations with news publishers to avoid the tax. U.S. critics... are likely to scrutinize this new proposal. The policy's success may depend on whether platforms choose to strike new commercial deals or, as they have done previously, alter their services to avoid the requirements.