Australia’s government has announced plans to introduce new rules that will require major tech companies to pay local publishers for news content.
This decision follows the 2021 News Media Bargaining Code, a pioneering law that compelled platforms like Google and Meta to compensate Australian news organisations for hosting their content. However, earlier this year, Meta – which owns Facebook and Instagram – declared it would not renew its payment agreements with Australian publishers, leading to tensions with lawmakers.
The newly proposed framework, called the News Bargaining Incentive, was unveiled on Thursday. It will target companies earning over A$250 million ($160 million; £125 million) annually, obligating them to strike commercial deals with publishers or face higher taxes. While the exact structure is yet to be finalised, it is expected to apply to platforms such as Facebook, Google, and TikTok.
Unlike the previous system, the updated framework mandates payments even if tech firms refuse to enter negotiations with media outlets.
Assistant Treasurer Stephen Jones defended the move, stating, “Digital platforms receive significant financial benefits from Australia, and they have a social and economic responsibility to support access to quality journalism.”
Under the 2021 code, deals brokered between news organisations and tech giants brought in millions of dollars for local journalism. However, as those agreements approached expiration, Meta announced it would not renew them. This decision is estimated to cost Australian publishers around A$200 million annually. Meta also revealed plans to phase out Facebook’s dedicated news tab in Australia, claiming news comprises less than 3% of global user content on its platform.
In February, Meta argued that the government’s approach unfairly “charges one industry to subsidise another.” The move prompted backlash from Prime Minister Anthony Albanese’s administration, which called Meta’s actions a “fundamental dereliction” of its responsibilities. Communications Minister Michelle Rowland warned that removing news content could leave a vacuum filled by misinformation.
The new taxation model is set to take effect in January 2025, with legislation to follow when parliament reconvenes in February. The government emphasised that the aim is to ensure tech companies contribute to funding Australian journalism through tax incentives, not as a means to increase revenue.
