Australia raises proposed levy on big tech over news content deals

Australia is moving to raise the proposed levy on major digital platforms that do not strike content deals with news organisations, in a fresh step in its media bargaining policy. Under the plan, companies would face a 2.5% charge on digital advertising revenue if they fail to reach agreements with local news services. The government is expected to introduce the legislation to parliament in the coming weeks.

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The revised proposal increases the levy from 2.25% and narrows the base on which it would be calculated. Instead of applying to total revenue, the charge would now be limited to digital advertising revenue only. That change means the penalty rate is higher, but the amount payable would be assessed on a smaller part of a platform's business.

The plan would apply to companies that do not strike commercial deals with at least six local news services. In the existing incentive structure, large search and social media companies could avoid the fee by entering into tax-deductible agreements with news organisations. AI companies would continue to be excluded from the scheme, according to the reported proposal.

Assistant Treasurer Daniel Mulino said large technology companies should compensate the organisations that provide them with content. He said the aim was to support a more sustainable news production ecosystem and that the policy was targeting the part of the business that uses news. Meta has criticised the plan, describing it as a government-mandated transfer of wealth.

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The move comes as Australia continues to refine one of the most closely watched media bargaining frameworks in the world. The country has already been a test case for efforts to force digital platforms to pay for journalism, and the latest proposal suggests the government is seeking to strengthen that pressure while limiting the scope of the levy. For publishers, the change could improve the chances of securing commercial agreements, while for platforms it raises the cost of failing to negotiate.

What remains unclear is how the legislation will be drafted in full and how major platforms will respond once it reaches parliament. It is also not yet clear whether the revised structure will change the number or value of deals struck with news organisations. The next key step will be the formal introduction of the bill in the coming weeks, which will show how far the government is prepared to go in enforcing the policy.

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