Australia Raises Levy on Tech Giants That Fail to Pay Local News Media

Post by : Saif

The Australian government has announced an increase in its proposed levy on major technology companies that fail to reach commercial agreements with local news organisations.

Under the revised News Bargaining Incentive, the levy has been increased from 2.25% to 2.5%, reinforcing Australia's efforts to ensure digital platforms contribute to funding public-interest journalism.

Levy Targets Major Digital Companies

The policy will apply to companies operating significant search engines or social media platforms in Australia with annual local revenue exceeding A$250 million.

The revised framework is expected to cover major global technology companies, including Google, Meta, TikTok, and LinkedIn.

Advertising Revenue Becomes New Tax Base

Unlike the earlier proposal, the updated levy will now be calculated only on a company's advertising revenue generated in Australia rather than its total business revenue.

Australian officials said the change makes the system more closely linked to the revenue generated from digital advertising while maintaining similar financial support for the country's news industry.

Funds to Support Australian Journalism

The government said all money collected through the levy will be directed toward Australia's news media sector.

Officials believe the policy will encourage technology companies to negotiate commercial agreements with publishers while helping strengthen independent journalism and local news organisations.

New Law Expected This Month

The Australian government plans to introduce the legislation when Parliament resumes later this month.

If approved, the law will reinforce Australia's digital news bargaining framework, which aims to ensure technology platforms fairly compensate media organisations for news content shared on their services.

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