Australia raises tech levy to push news deals with publishers

MUMBAI: Looks like Australia is asking Big Tech to put more money where the news is. The Australian government has tightened its proposed News Bargaining Incentive, increasing the levy on large digital platforms as it seeks to push global technology companies into signing commercial agreements with local news publishers.

Under the revised proposal, eligible platforms that choose not to strike news payment deals could face a levy of 2.5 per cent of their Australian advertising revenue, up from the 2.25 per cent originally proposed.

The government has also reworked how the levy will be calculated. Instead of applying it to a company’s overall Australian revenue, the charge will now be based solely on advertising revenue generated within Australia, a move officials say better reflects the part of the business that benefits from news content while maintaining similar funding levels for publishers.

The framework is expected to apply to operators of major search engines and social media platforms with annual Australian revenue exceeding A$250 million. That threshold is likely to bring companies including Google, Meta, TikTok and LinkedIn within the scope of the legislation.

In another significant change, the government has removed an earlier exemption for professional networking platforms, meaning LinkedIn will now also fall under the proposed regime.

Revenue collected through the levy will be channelled into supporting Australia’s news industry, with the government aiming to strengthen public-interest journalism while encouraging technology companies to negotiate commercial agreements directly with publishers instead of paying the levy.

Assistant Treasurer Daniel Mulino said the increase to 2.5 per cent was designed to ensure the revised advertising-based model generates funding comparable to the original proposal. He added that tying the levy to advertising income means contributions will rise as digital advertising businesses continue to grow.

The legislation is expected to be introduced when the Australian Parliament returns later this month. If passed, it will mark the latest chapter in Australia’s long-running efforts to rebalance the relationship between global technology platforms and the country’s news publishers.

The move also reinforces a broader international trend. Governments around the world are increasingly looking beyond content moderation and privacy rules to ask a tougher question: if digital platforms profit from the news ecosystem, how much should they contribute to keeping it alive?