While Aussie publishers have opened their arms to several of the Federal Government’s changes to its proposed News Bargaining Incentive legislation, one independent publisher has warned the reforms still risk shutting most digital publishers out of the scheme.
It comes after the Albanese Government announced amendments to the legislation over the weekend, increasing the levy on major technology platforms from 2.25 per cent to 2.5 per cent while narrowing its application to Australian digital advertising revenue.
The changes are designed to encourage companies including Google, Meta and TikTok to strike commercial agreements with Australian news organisations. If those tech giants do not strike deals, they will have no choice but to pay the levy.
Co-founder of independent publisher Man of Many, said although the government had adopted “most of what the independent sector asked for” regarding the changes, he argued the reforms still fail to address the scheme’s biggest flaw – ensuring independent publishers can actually access the funding.
According to Man of Many, while the Australian Communications and Media Authority identifies 2,864 professional news outlets across Australia, fewer than 100 are currently eligible under the register that determines access to funding.
The publisher also argued the commercial deal pathway is unlikely to succeed, saying it believes platforms are more likely to pay the levy than negotiate agreements, highlighting Meta’s decision to walk away from News Media Bargaining Code deals and its understanding that Google is expected to take the same approach rather than establish a global precedent for paying publishers.
Meta declined to comment on the changes to the legislation, as did Google.
However, Meta has previously argued the proposal is “poorly designed” and “grossly unfair”, saying it would fail to create a “diverse and sustainable news industry”.
Purcell and Man of Many added that the changes will entrench the position of larger publishers, rather than spread the gains of the incentive more equally across the sector.
“The government has turned a scheme that still pays the publishers who were already being paid,” he said.
Purcell also questioned the eligibility framework beneath the legislation, arguing it excludes much of Australia’s independent publishing sector.
“ACMA has already built and operationalised a definition of professional news that captures the actual industry. It updates every two years as the landscape changes,” he said.
“The government does not need to invent a new gate or defend the old one. It needs to use the one its own regulator already published.”
Tim Duggan, chair of the Digital Publishers Alliance, said it was encouraging to finally see progress, but described the legislation as “a pretty mixed bag”.
“It’s heartening to finally see some much needed movement in this area,” Duggan said.
“One of the biggest issues is that the size of the potential pie looks like it has been reduced too much. I struggle to see how it will incentivise the total desired by the government once the platforms start using accounting trickery to minimise their obligations.”
He also warned the legislation risked repeating shortcomings of the original News Media Bargaining Code by concentrating benefits among only a handful of large publishers.
“We also continue to have a large concern that the failings of the News Media Code will be repeated and just a small number of large players will benefit due to the requirement for a minimum of just six deals.”
Despite those concerns, Duggan acknowledged the government had demonstrated it was listening to industry feedback and pointed to stronger incentives for deals with smaller publishers as a positive development.
Are Media also welcomed the government’s latest proposal, but said the legislation must ultimately ensure digital platforms cannot avoid paying publishers for journalism they rely upon.
“The levy must deliver on its purpose: bringing major digital platforms to the table and securing meaningful, sustainable commercial agreements with Australian publishers,” said Are Media CEO Sally Eagle.
She added that the final legislation “must be transparent and without gaps that allow platforms to sidestep that responsibility”.
Meanwhile, News Corp Australasia executive chairman Michael Miller argued the latest changes weakened the government’s negotiating position.
“These changes gut the incentive for tech platforms to strike fair deals with Australian media, right when those rules need strengthening, not softening,” Miller said.
“On an already uneven playing field, getting this wrong won’t just hurt Australian media. It will erode the quality and independence of news every Australian relies on.”
He added that technology companies should face stronger transparency requirements and tougher penalties if they fail to comply with Australian law.
“Tech giants cannot keep dodging their obligations. Australia deserves full revenue transparency, backed by severe, non-negotiable penalties for any platform that flouts local law.”
The legislation is expected to be introduced when Parliament returns in Spring following the government’s consultation process, with publishers continuing to lobby for further amendments before it becomes law.
B&T has contacted TikTok for comment.
