The Australian government announced Monday (August 3) that it will raise its proposed news bargaining levy on large tech companies, meaning platforms like Google, Meta, and TikTok that fail to reach commercial agreements with local news outlets will face steeper costs. The new framework raises the levy rate from the originally planned 2.25% to 2.5%, shifts the tax base to advertising revenue, and removes the exemption for professional networking platform LinkedIn, bringing it under the scope of the rules.
The new regime, dubbed the “News Bargaining Incentive,” is designed to extend the spirit of Australia’s News Media Bargaining Code by using financial pressure to push tech giants into partnerships with the local news industry. According to the Australian government, the levy will apply to tech companies with significant search or social media services in Australia and local revenue exceeding A$250 million (approximately US$175.7 million). This includes platforms such as Google, Meta’s Facebook, and TikTok, with LinkedIn—previously exempt—now also brought into the fold.
Unlike the earlier version, the new levy will be calculated based on tech companies’ advertising revenue rather than overall business revenue. The Australian government said this approach ensures the levy more closely reflects the commercial value platforms derive from news content, while avoiding taxation on revenue streams unrelated to news. Australia’s Assistant Treasurer Daniel Mulino told ABC Radio: “The tax base for the News Bargaining Incentive will be advertising revenue.” He added: “We’ve increased the rate from 2.25% to 2.5% to ensure the total amount raised through agreements between these platforms and media is broadly the same, and going forward, as platform advertising revenue grows, the fees will grow in line with that—but it will be tied to the part of their business that is more relevant to news.”
Under the government’s plan, all revenue collected from the levy will be channeled into the news industry, with particular emphasis on supporting local news outlets struggling with the shift of digital advertising dollars away from traditional media. The legislation is expected to be introduced when Australia’s Parliament resumes later this month. If passed, major tech companies like Google, Meta, and TikTok that fail to reach agreements with Australian media could face significant additional costs.
Australia previously enacted the News Media Bargaining Code, which requires large digital platforms to negotiate fair compensation with media companies when using their news content. This latest adjustment is seen as a continuation of that policy, using financial leverage to push tech giants into partnerships with the local news industry. Market analysts note the new framework will directly impact tech giants’ operating costs in Australia, particularly for companies that have yet to strike deals with local media.
Notably, the shift to an advertising-revenue base—rather than overall revenue—could be seen as a relatively friendly adjustment for tech companies, since advertising typically accounts for only a portion of their total revenue. However, given the simultaneous rate increase, the overall levy amount will ultimately depend on each company’s advertising revenue scale.
For tech giants, the new framework means choosing not to partner with Australian media will come with a higher financial price tag. For Australia’s news industry, the policy promises a stable funding stream, particularly vital for the development of local journalism. Whether other countries will follow Australia’s lead is now a key question for international observers.