KUALA LUMPUR – Australia is intensifying its efforts to make Big Tech contribute to the survival of local journalism with a new legislative proposal.
Under the draft News Bargaining Incentive, major social media and search companies operating in Australia would face a 2.25% levy on domestic revenue.
The tax could be avoided if companies enter commercial agreements with Australian media organisations, effectively funding journalism directly through content payments or licensing arrangements.
The initiative is designed to replace the 2021 News Media Bargaining Code, which required platforms such as Google and Meta to negotiate payments with publishers for shared news content. Those unwilling to negotiate risked compulsory arbitration.
That earlier framework sparked a tense showdown. Meta temporarily blocked Australians from sharing news links before signing deals with several publishers, while in Canada it took a stricter stance, permanently removing news content.
With agreements under the original code nearing renewal, Meta has signalled little interest in extending them, prompting Canberra to adopt a revised approach.
Draft legislation released on Tuesday targets any search engine or social media platform generating more than AU$250 million (RM712.5 million) annually in Australia and distributing news content. Companies could reduce their levy by funding journalism directly.
Eligible media organisations must generate at least AU$150,000 (RM427,500) in annual revenue, primarily serve Australian audiences, and meet professional standards, including maintaining a formal complaints process.
Australia’s media sector, like many globally, has struggled as advertising rapidly moved online. Google and Meta have captured the bulk of digital advertising revenue, leaving traditional publishers struggling to compete, while multinational tech firms shift significant profits offshore and pay minimal tax.
Declining newsroom resources and weakened local journalism prompted policymakers to act. The original bargaining code was widely hailed as a world-first, influencing similar initiatives abroad. The new proposal aims to build on that model.
The government hopes the scheme will be operational by the financial year ending June 30, though swift parliamentary action would be required.
Unsurprisingly, the proposal has met opposition from major tech firms, which lobbied against Australia’s previous efforts. The country has emerged as a stringent regulator of Big Tech, drawing global attention with measures such as the under-16 social media ban, even as critics note ongoing teen access.
Public support for tighter regulation remains strong, reflecting concern over social media conduct. The new legislation offers technology giants a clear choice: voluntarily support Australian journalism or contribute via the government levy. – April 30, 2026