Australia raises levy on Big Tech to strengthen news payment framework

The Australian government has revised its proposed News Bargaining Incentive, increasing the levy on large technology platforms as it pushes companies to strike commercial agreements with local news publishers.

Under the updated proposal, eligible digital platforms that do not enter into news payment deals could face a levy of 2.5% of their Australian advertising revenue, up from the previously proposed 2.25%.

The government has also changed the way the charge will be calculated. Instead of applying it to a company's overall local revenue, the levy will now be based solely on advertising income generated in Australia. Officials said the revised approach better reflects the part of the business that benefits from news content while maintaining the intended level of financial support for publishers.

The proposed framework will apply to companies operating significant search engines or social media platforms in Australia with annual local revenue exceeding A$250 million. The threshold is expected to bring companies such as Meta, Google, TikTok and LinkedIn within its scope.

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In another revision, the government has removed an earlier exemption that would have excluded professional networking platforms, extending the proposed rules to LinkedIn as well.

According to the Australian government, funds collected through the levy will be directed towards supporting the country's news media sector, with the objective of strengthening public-interest journalism and encouraging commercial partnerships between publishers and digital platforms.

Assistant Treasurer Daniel Mulino said the higher levy was introduced to ensure the revised advertising-based model generates funding levels comparable to the original proposal. He added that linking the charge to advertising revenue would allow contributions to increase alongside the growth of digital advertising businesses.

The legislation is expected to be introduced when the Australian Parliament reconvenes later this month. If approved, the measure will become the latest step in Australia's efforts to ensure global technology companies contribute financially to the sustainability of local journalism.