The Albanese government is preparing to table a draft of the News Bargaining Incentive in parliament this week.
The proposed draft, the News Bargaining Incentive, aims to formalise how major digital publishers financially support Aussie publishers.
The move marks a shift in policy design to ensure major tech platforms cannot sidestep their obligations to support Australian journalism. Large social media and search platforms with Australian-derived revenue of at least $250m will be subject to the new rules, irrespective of whether they carry news content. This will impact Google, Meta and TikTok.
The existing News Media Bargaining Code, which came into effect in 2021, had structural weaknesses that allowed platforms to avoid payments by reducing or entirely removing Australian news content from their platforms. In 2024, Meta said it would not renew negotiations with Australian publishers, arguing that interest in news content on its platform had nosedived.
Under the new proposal, digital platforms would face financial consequences for non-compliance. The government has previously flagged that it will pin a 2.25 per cent tax on the revenue of the three tech companies if they do not negotiate deals with publishers worth 1.5 per cent of their turnover. The money provided to publishers would be tax deductible.
In effect, the policy would shift from a voluntary negotiation to a more formal charge aimed at guaranteeing ongoing contributions to the Australian news ecosystem.
The Albanese government would like the new laws passed by the middle of this year.
Although Google has continued to support Aussie publishers, major tech platforms are likely to fight against the legislation. In particular, US-based platforms and their lobbyists are expected to challenge the framework on diplomatic and economic grounds, with Donald Trump’s top trade tsar previously raising the alarm about Australia’s social media ban and local content requirements. The are expected to argue that the incentive is as a form of indirect tax.
Media industry leaders—including Matt Stanton, CEO and managing director of Nine, Beverley McGarvey, president of Network Ten, Michael Miller, executive chairman News Corp Australasia among others—have thrown their weight behind a refreshed News Bargaining Incentive.
