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Australia plans 2.25% news levy on digital platforms

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The Australian government has released a draft of a new News Bargaining Incentive (NBI) scheme, proposing a levy equivalent to 2.25% of the Australian local revenues of major digital platforms such as Google, Meta, and TikTok, to support the domestic news industry.

Prime Minister Anthony Albanese said the government aims to use policy design to encourage tech companies and news organisations to reach commercial agreements, thereby avoiding direct taxation. He stressed that digital platforms should not profit further from the use of news content without fair compensation.

Under the draft proposal, digital platforms that sign paid agreements with local news publishers would receive tax offsets of between 150% and 170% of the levy amount. All revenue collected will be directed to supporting Australian journalism and the broader news sector. The new scheme will replace the Morrison government’s News Media Bargaining Code, which the government argues is no longer effective in addressing the imbalance between digital platforms and traditional media.

One key trigger for the reform was Meta’s earlier decision not to renew a A$70 million news content payment agreement, raising concerns about shifting relationships between tech platforms and the media industry. Under the new model, platforms operating large social media or search services and meeting revenue thresholds will be required to participate or face the levy.

The government plans to introduce the draft legislation during the winter parliamentary session. Policy documents indicate priority will be given to outlets employing Australian journalists, with potential consideration for multicultural media support.

Commentary

News is a public good, and local journalism plays a vital role in democratic accountability and public information. As advertising revenue and audience traffic increasingly shift to digital platforms, the financial base of traditional media has been weakened. Government intervention, in this sense, is an attempt to correct market failure and provide funding support for Australia’s news industry.

However, this also reveals a deeper structural reality: journalism has become highly dependent on platform-driven traffic. While media organisations criticise the concentration of control over information distribution, they also cannot operate without these platforms. As a result, the policy is not only a form of repair, but also an extension of an already entrenched dependency relationship.

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