Australia unveils 2.25% levy on tech firms for news content

On Tuesday, the Australian government unveiled draft legislation called the News Bargaining Incentive (NBI). The proposed law would require tech companies to pay for journalism or face a levy on their local revenues. Specifically, the NBI would impose a 2.25% levy on the Australian revenues of Meta, Google, and TikTok unless they strike commercial deals with local news publishers.

This draft legislation represents Australia’s second attempt to force tech platforms to fund journalism. The original 2021 News Media Bargaining Code had a flaw that allowed platforms to remove news content to avoid paying. Meta utilized this loophole in 2024, removing news from its platform, which reportedly triggered widespread job cuts in Australian newsrooms. The Albanese government first announced the NBI in December 2024 to replace the 2021 Code.

The financial impact of the proposed levy depends on the commercial agreements platforms reach:

• The baseline levy is set at 2.25% of local revenues.
• The effective tax rate could drop to 1.5% if enough agreements are made.
• The levy could generate between A$200 million and A$250 million for Australian journalism.

Platforms have until July to comply with the legislation. However, AI services are explicitly excluded from the scope of the NBI, according to assistant treasurer Daniel Mulino. Other platforms, including Microsoft, Snapchat, and OpenAI, are also excluded from the measure.

Both Meta and Google oppose the proposed legislation. Meta VP of Communication Andy Stone criticized the proposal, calling it “nothing more than a digital service tax” and noting that the tax applies whether or not news content appears on its platforms. Google also rejected the tax, with a spokesperson stating that the company already has commercial agreements supporting more than 90 news businesses and 226 outlets in Australia. The proposed levy also faces opposition from the US; the Trump administration has threatened tariffs against countries that implement digital services taxes, recently warning the U.K. over its own digital services tax. When asked about potential pushback, Prime Minister Anthony Albanese stated that Australia is a sovereign nation that makes decisions based on its national interest.

Australia is not the only country addressing this issue. Other jurisdictions, including Canada, Brazil, and the EU, have also challenged tech platforms over news funding, though results have been mixed. In Canada, legislation led Meta to remove news entirely. Meanwhile, Brazil’s bill has remained in legislative limbo, and the EU faces varying enforcement of its rules. By contrast, South Africa regulators brokered direct deals with Google, Meta, TikTok, and Microsoft, securing roughly $40 million for local news outlets over five years.

Why it matters

The NBI represents Australia’s second attempt to force Big Tech to fund journalism by closing a loophole that previously allowed platforms to avoid payments by removing news content.