Australia passes law to levy tech giants that fail to pay for local news

2 minutes

Australia has taken a further step towards encouraging major digital platforms to contribute to domestic journalism, with Parliament passing legislation that would impose a potential 2.75% charge on relevant Australian digital advertising revenue. The law applies to platforms that provide social media or search services and have Australian annual digital advertising revenue of more than AUD 250 million.

social media user

The measure is the latest development in Australia's distinctive approach to the relationship between digital platforms and the local news media. The 2021 News Media and Digital Platforms Mandatory Bargaining Code established a framework for commercial negotiations between major digital platforms and Australian news businesses concerning payment for news content. The News Bargaining Incentive takes that approach further by attaching a financial consequence to the failure to reach sufficient agreements.

Treasury's April 2026 exposure draft proposed a 2.25% charge, but the rate was subsequently increased during the legislative process to 2.5% (seeGovernment Finalizes News Bargaining Incentive Legislation (5 August 2026)) and ultimately reached 2.75%.

The legislation also tightens the conditions for avoiding the charge. The affected digital platforms can offset the charge by entering qualifying agreements with at least eight Australian news businesses, compared with six under the original proposal. The maximum amount attributable to any one agreement has also increased from 16.67% to 25% of a platform's potential liability.

The charges collected from the digital platforms are redistributed to the domestic news media sector through the News Journalism Payments scheme.

The Australian model is notable internationally because it uses a tax-like financial incentive to influence commercial bargaining between private businesses, rather than directly requiring digital platforms to pay a specified amount for news content.

The legislation will take effect the day after receiving royal assent, applying from the 2025-26 financial year.

Report from our correspondent Steven Fahey, Canberra. Follow our reporting on this via our daily Tax News Service (subscribers only).

Related

OECD Issues Tax Report to G20 Finance Ministers, Central Bank Governors with Emphasis on Pillar Two Developments

The OECD secretary-general has issued the latest tax report to G20 finance ministers and central bank governors focusing on global minimum tax implementation, tax certainty and transparency, digital and cross-border challenges and sustained support for developing economies.
3 minutes

Supreme Court Finds Uber Drivers Are Employees

The Supreme Court in New Zealand has found in a test case that four Uber drivers are employees under section 6 of the Employment Relations Act 2000 (ERA), and not independent contractors in business on their own account.
4 minutes