Tech Platforms Fund Journalism
Australia Implements New Levy For Tech Giants To Fund Local News Journalism
Key Points
The levy applies to platforms with a 'significant' social media or search service in Australia and local advertising revenue above A$250 million; they can avoid the charge by finalizing agreements with at least eight different Australian publishers before the end of their reporting period, with the value of those deals offset against the levy liability.
Offsets vary by publisher size: deals with large publishers qualify for a 150% offset against the levy, while deals with small and medium outlets can qualify for up to a 200% offset; each deal is capped at 25% of the platform's levy liability.
The law covers Meta, Alphabet's Google, TikTok, LinkedIn, and Microsoft (via LinkedIn) as eligible platforms.
Deals must relate to the production of news content or to news content produced by publishers and made available online by the platform.
Australia previously introduced a mandatory bargaining framework in 2021, including a period when Facebook paused sharing news during negotiations; the current law strengthens the mechanism linking platform revenues to journalism funding.
Australia has enacted the News Bargaining Incentive, requiring major tech platforms including Google, Meta, TikTok, and LinkedIn to pay for local news or face a 2.5% levy on Australian advertising revenue Advanced Television. Platforms can avoid the tax by striking commercial deals with at least eight different Australian publishers by their reporting deadline, with deal values offset against the levy liability The Morning.
The law directs levy proceeds toward supporting Australian journalism and news production. It marks the latest step in Australia's ongoing effort to ensure tech companies fund the local news ecosystem they profit from through user engagement and advertising TVNewsCheck.
How Platforms Can Escape the Levy
Companies facing the 2.5% tax can eliminate it entirely by finalizing news deals with at least eight publishers before their reporting period ends The Morning. Deal values are offset against the levy amount, but each individual agreement is capped at 25% of a platform's total levy liability. Smaller publishers offer stronger incentives—regional and independent outlets qualify for 200% offsets, while large publishers receive 150% offsets Advanced Television.
Which Platforms Face the New Requirements
The law applies to Meta, Alphabet's Google, TikTok, LinkedIn, and Microsoft (via LinkedIn)—any platform with a 'significant' social media or search service in Australia and local advertising revenue exceeding A$250 million TVNewsCheck. Deals must specifically relate to news content production or news that publishers make available online through the platform BizToc.
Australia's Long Fight With Big Tech Over News
This legislation strengthens an earlier mandatory bargaining framework Australia introduced in 2021 The Epoch Times. During those earlier negotiations, Facebook paused news sharing for weeks in protest before eventually reaching deals with Australian publishers. The new law tightens the financial pressure by linking platform revenues directly to journalism funding commitments TVNewsCheck.
Australia's approach signals a potential model for other governments seeking fair compensation for news content online. The strategy recognizes that tech platforms generate enormous ad revenue from news content and user traffic it attracts, yet historically paid news publishers little to nothing Advanced Television.
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