Australia Proposes 2.25% Tax on Meta, Google, TikTok Under News Bargaining Incentive to Support Journalism

The Australian government has unveiled draft legislation to impose a 2.25% revenue tax on digital giants Meta, Google, and TikTok if they fail to reach commercial agreements with local news publishers. Released on Tuesday, the "News Bargaining Incentive" (NBI) aims to raise between $200 million and $250 million AUD annually to support a sustainable journalism sector. Prime Minister Anthony Albanese defended the move, stating that multinational corporations should not be able to generate profits from journalistic content without providing appropriate compensation.

A New Model for Digital Compensation

The proposed legislation is Australia's second major attempt to regulate the financial relationship between Big Tech and the media. Under the new framework, platforms that have more than five million monthly active Australian users and an annual local revenue exceeding $250 million will be subject to the levy. Unlike the previous 2021 News Media Bargaining Code, which relied on forced arbitration, the NBI functions as a "negotiate or pay" system. Companies can reduce their tax liability by striking direct deals with news organizations. To encourage diversity in the media landscape, the government is offering higher tax offsets for deals made with small and regional publishers. Social Media Ban in Australia: Over 4.7 Million Accounts Linked to Children Under 16 Deactivated Within Days, PM Anthony Albanese Hails Companies’ ‘Meaningful Effort’.

The Push for Democracy and Sustainability

Communications Minister Anika Wells emphasized that the funds collected from the levy would be distributed to newsrooms based on their journalist headcount. The government argues that this ensures the money directly supports the production of public-interest journalism rather than corporate overhead. "Investment in journalism is critical to a healthy democracy," Prime Minister Albanese told reporters in Canberra. He noted that the value created by journalists must be recognized by the platforms that use news to drive user engagement and advertising revenue.

Tech Giants Respond with Criticism

The targeted platforms have voiced strong opposition to the draft bill. Meta, the parent company of Facebook and Instagram, labeled the proposal a "digital services tax" and argued that news organizations voluntarily post content because they derive value from the platform's reach. Meta has notably scaled back its news presence in Australia and other markets, claiming that news content is not a significant driver of its business.

Google also criticized the move, pointing out that it already maintains commercial agreements with over 90 Australian news businesses. A spokesperson for Google expressed concern that the legislation "misunderstands the evolving advertising industry" and criticized the exclusion of AI platforms from the tax. TikTok, which was not a primary target of the 2021 code but is included in this new round, has yet to issue a formal statement. Meta, Snapchat, TikTok and YouTube Aren’t Fully Complying With Child Account Ban, Says Australia.

Context and Next Steps

The move follows a period of tension where Meta declined to renew previous multi-million dollar deals with Australian publishers, leading to fears of a "news desert" on social media. The government expects to introduce the final bill to Parliament by July 2, 2026, with the levy intended to take effect for the 2025–26 financial year. The legislation specifically excludes AI chatbot services like ChatGPT and Gemini, provided they are used solely for answering questions and not as content-sharing platforms. This distinction marks a strategic attempt by the Australian government to target social and search platforms that extract ambient commercial value from news feeds.

(The above story first appeared on LatestLY on Apr 29, 2026 08:49 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).