Politics

Australia proposes levy on Meta, Google, TikTok to fund newsrooms

Australia moved to make Big Tech pay for news, tying a 2.25% levy to local revenue unless platforms cut direct deals with publishers.

Sarah Chen··2 min read
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Australia proposes levy on Meta, Google, TikTok to fund newsrooms
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Australia has put the democratic bargain at the center of a new fight over digital power: if Meta, Google and TikTok dominate the advertising market that once sustained local news, should they help pay for the journalism they displaced? The government released draft legislation on April 28, 2026, and plans to introduce it to Parliament by July 2, using a new model called the Media Bargaining Incentive to push platforms into commercial agreements with Australian news organizations rather than simply paying a levy.

Under the draft, platforms with more than A$250 million in Australian-linked revenue and either at least 5 million social media users or a 10 million-user search base would face a charge equal to 2.25% of their revenue base, measured from previous financial years. That charge could be reduced or wiped out if companies strike payment agreements with news outlets. Officials expect the policy to raise between A$200 million and A$250 million a year, with the money distributed to newsrooms according to journalist headcount, a design meant to reward organizations that still employ reporting staff.

The proposal builds on Australia’s 2021 News Media Bargaining Code, which forced large digital platforms into commercial deals with publishers but did not stop them from later pulling back. Meta later declined to renew agreements worth about A$70 million and removed or reduced news from its platforms, exposing a gap the new framework is designed to close. The government has opened consultation on the draft until May 18, a period that is likely to draw heavy lobbying from both tech companies and media groups.

News Funding Allocations
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The wider policy backdrop is already in place. Australia’s News Media Assistance Program, released in December 2024, set out support for public interest journalism and media diversity, including A$99.1 million in grants, A$33 million over three years for the Australian Associated Press, and a minimum A$3 million a year for regional newspaper advertising. The Journalism Assistance Fund, launched on November 21, 2025, added A$67.6 million to support journalists’ wages and has already backed more than 2,000 journalists across 93 regional, 23 culturally and linguistically diverse, 22 suburban and 2 First Nations publishers. A News Innovation Fund launched on April 22, 2026, was meant to help newsrooms adapt and find new revenue streams.

The politics are stark. Prime Minister Anthony Albanese has argued that journalists’ work has monetary value and that technology companies should not profit from creative content without compensation. Meta has called the proposal a “digital services tax” and a “government-mandated transfer of wealth,” saying it would not produce a sustainable news sector. Google has also criticized the plan as unnecessary, while news outlets have welcomed the move as vital to keeping journalism viable. The debate now reaches beyond Australia: if this levy survives Parliament, it could become a template other democracies consider as they search for a way to fund reporting in the platform age.

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