The Albanese government’s long-awaited law to sustain public interest journalism will limit the scope of any charge imposed on digital platforms to a percentage of their advertising revenue in Australia, in a move that is likely to spark concern about possible legislative loopholes that favour big tech.
The significant last-minute change to the News Bargaining Incentive is among a suite of tweaks to the legislation made following a lengthy consultation process with news media industry stakeholders and global digital platforms.
Under the original draft of the NBI, which was first flagged by Prime Minister Anthony Albanese in December 2024, tech giants such as Meta and Google would be charged 2.25 per cent on their Australian gross revenue – and the funds would be distributed back to the news media sector – if the companies failed to strike direct commercial agreements of equal or greater value with Australian news publishers.
On Monday, Labor will announce that the so-called “charge rate” will be increased from 2.25 per cent to 2.5 per cent but, critically, it will now be calculated only on digital advertising revenue attributable to Australia, not on the companies’ overall gross revenue in this country.
The likely consequence of that amendment is that it could enable digital platforms to cut cheaper commercial deals with news media outlets – an outcome that is sure to upset the creators of public interest journalism, especially the larger media companies that produce the vast majority of overall news content.
Michael Miller, News Corp Australasia’s Executive Chairman, said the changes “gut the incentive for tech platforms to strike fair deals with Australian media, right when those rules need strengthening, not softening’’.
“On an already uneven playing field, getting this wrong won’t just hurt Australian media,’’ he said. “It will erode the quality and independence of news every Australian relies on.
“Tech giants cannot keep dodging their obligations. Australia deserves full revenue transparency, backed by severe, non-negotiable penalties for any platform that flouts local law.’’
Assistant Treasurer Daniel Mulino, who has ministerial carriage of the NBI, said on Sunday the changes would reinforce the policy’s rationale of supporting journalism and encouraging commercial deals.
“Australian journalism is important to a well-functioning democracy and we want it to be sustainable now and into the future,” he said.
“While we are making some changes to the News Bargaining Incentive, they do not alter the intent of the legislation and remain true to the policy rationale.
“We want digital platforms to do deals with a diverse range of media organisations and have shown good faith with both the platforms and media companies during the consultation process.”
The federal government will introduce some amendments that will specifically benefit small and medium news businesses, particularly those in the regions, with digital platforms to be offered increased offsets (from 170 per cent to 200 per cent) for deals done with smaller publishers.
The tweak has been introduced to encourage financial support for smaller and regional publishing organisations.
The NBI will now also require digital platforms to strike commercial deals with a minimum of six news media corporate groups – up from four – in order to satisfy their obligations under the legislation.
The federal government will argue that the amendment will create a broader spread of support for the news media sector. However, it is likely to come at the further expense of major metropolitan newsrooms, which have been hardest hit by the digital giants’ failure to pay for the copyrighted news content they use – and monetise – on their online platforms.
One change to the NBI that will unsettle global tech behemoth Microsoft is that corporate social media platform LinkedIn, which is owned by Microsoft, will no longer be exempt under the legislation.
The federal government has determined that professional networking services such as LinkedIn significantly rely on news content on their platforms.
The NBI will also be subject to a mandatory review after three years to allow adequate time to collect data on the operation of the scheme.
The changes to the NBI were made after 85 submissions were received by the Albanese government over the past few months as part of its consultation on the exposure draft legislation.
Minister for Communications Anika Wells said the changes to the NBI would ensure the viability of the news media sector.
”Journalism is the lifeblood of a robust democracy, which is why the Albanese government is backing a strong and sustainable media sector,” she said on Sunday.
“An important change is the doubling of the distribution scheme loading for smaller and regional publishers.
“This acknowledges both the challenges smaller outlets face, but also the incredible contribution they make to the communities they serve.”
The legislation is expected to be introduced into parliament later this month.
The NBI is a modification of the news media bargaining code established by the Morrison Coalition government in 2021, which made tech firms liable for payments to news media companies worth hundreds of millions of dollars.
The NBI was created to close a loophole in the news media bargaining code which allowed tech companies to walk away from the payment-for-content deals, which Meta did at the beginning of 2024.
In April this year, Mr Albanese said journalism “defines the way that Australian society operates”.
“It shouldn’t just be able to be taken by a large multinational corporation and used to generate profits for that organisation, with no compensation appropriate for the people who produce that creative content.
“And so this (the NBI) is a fix that we are putting forward.”
