Australia is drafting a new approach to fund journalism by nudging tech platforms to strike agreements with local publishers. If deals aren’t reached, a 2.25% revenue levy could apply. This page answers common questions about who’s affected, what the draft law aims to achieve, and how platforms might respond. Read on to understand how this fits into broader debates about platform-funded news and why it matters for publishers, platforms, and readers.
The draft legislation proposes a 2.25% levy on the revenue of social media and search platforms if negotiated deals with Australian publishers aren’t secured. This means platforms would pay a percentage of their local revenue into a fund designed to compensate publishers for the use of news content when no voluntary agreements exist.
Platforms have criticised the plan, calling it a digital services tax that distorts the ad market and may not deliver sustainable funding for journalism. Possible responses could include negotiating private deals with publishers, lobbying against the draft, adjusting product strategies, or challenging the levy in legal or political arenas. Public stances and potential for interim compliance steps should be watched closely as the bill evolves.
Proponents say the levy helps hard-pressed newsrooms by ensuring compensation for the use of their content, supporting a healthy democracy through robust journalism, and leveling the playing field with platforms that benefit from news traffic. Critics argue it could distort advertising markets, discourage innovation on platforms, and may not translate into lasting funding for journalism if publishers don’t strike lasting deals.
Australia’s approach sits alongside broader conversations about how to fund journalism in the digital age. Many countries are exploring mechanisms to require platforms to contribute to news ecosystems, while balancing competition and innovation. The Australian draft builds on the 2021 News Media Bargaining Code and reflects ongoing attempts to attach monetary value to news content in the age of AI and large-scale platforms.
The levy would apply if negotiated deals with publishers aren’t reached within a specified period. If publishers strike deals, the levy would typically not apply to those arrangements. The framework is designed to incentivise timely negotiations while ensuring publishers aren’t left uncompensated when deals lapse or are absent.
Publishers should watch for how the government refines the levy, how the fund would be administered, and what safeguards exist to ensure transparency and fair compensation. The consultation period is an opportunity for industry players to voice concerns, propose alternative models, and shape the final form of the policy.
Australia is proposing to tax digital giants Meta, Google and TikTok a proportion of their revenue to pay for news reporters.