Australia tried this fight once already. In 2021 it passed the News Media Bargaining Code, which forced platforms like Meta to pay local publishers. Meta had a workaround: just stop carrying news. The company pulled the plug in 2024, and Australian newsrooms cut jobs.
This time the government wants to close the gap. The new draft law taxes the platforms whether they show news or not.
The proposed law, called the News Bargaining Incentive (NBI), would impose a 2.25% levy on the Australian revenues of Meta, Google, and TikTok unless they sign commercial deals with local news publishers, Communications Minister Anika Wells said. The more deals each platform signs, the lower the bill. The effective rate drops to 1.5% if enough get done.
That bands could send between A$200 million and A$250 million back into Australian journalism, the government said. AI services are explicitly carved out for now. Assistant Treasurer Daniel Mulino said AI "is not included in the scope of this measure" because it is being looked at through a different policy track.
The original 2021 Code had one core flaw. Platforms could simply stop carrying news to skip the bill. Meta did exactly that in 2024 after a public fight with the government, and the move reportedly triggered job cuts across Australian newsrooms.
The NBI removes the workaround. The tax applies regardless of whether news content shows up on the platform. TikTok is also included this time, a notable expansion from the original Code.
Meta is already pushing back. VP of Communications Andy Stone said the proposal is "nothing more than a digital service tax." He added: "We don't take their news content. Yet the tax applies whether or not news content appears on our platforms."
The Trump administration has fought against digital services taxes on U.S. tech companies, and Trump has warned the U.K. it could face tariffs unless it drops a similar tax. Asked about the pushback, Prime Minister Anthony Albanese said: "We're a sovereign nation, and my Government will make decisions based upon the Australian national interest."
If the bill passes, the levy kicks in by July, the same date the deal deadline arrives.