Australia raises tech levy to pressure deals with news publishers

Australia lifted its proposed News Bargaining Incentive to 2.5% and tied it to Australian digital advertising revenue, increasing pressure on Meta, Alphabet’s Google, TikTok and LinkedIn to strike deals with news publishers or face the charge. The levy is designed to fall only when companies do not make commercial agreements, turning negotiation into the cheaper option.

The revised plan shifted the tax base away from total business revenue and expanded the named platforms to include LinkedIn. In April, the government had said Meta, Google and TikTok could face multimillion-dollar charges if they refused to negotiate with local media outlets for news on their platforms.

Treasury said on Jan. 29, 2025, that the News Bargaining Incentive was meant to ensure large digital platforms contribute to the sustainability of news and journalism in Australia. Treasury’s fact sheet said consultation would begin in early 2025 and legislation would follow detailed consultation, while a consultation paper said any money collected would be distributed through a statutory payment scheme.

The policy builds on Australia’s earlier news bargaining code, which made the country one of the most aggressive regulators of Big Tech’s role in media. Supporters say the leverage is needed as audiences and advertising shift online and publishers lose bargaining power. Critics warn that a levy can add unpredictable costs and that platforms may pass them on through advertising prices or other changes.

The result will be watched well beyond Australia. Europe and North America are already testing their own ways to rebalance the relationship between platforms and content producers, and Canberra has now made the case more concrete by linking the tax directly to digital ad revenue and to deals with publishers. That makes Australia a live test of whether regulation can strengthen journalism by forcing direct payments, or simply create a new round of leverage battles over platform power and advertising markets.