Australia to impose 2% levy on Big Tech firms unless they make local news deals

Australia plans to impose a 2.25% levy on Meta, Google and TikTok unless they strike payment deals with local news publishers, in a move aimed at supporting the country’s struggling media industry.

Under the proposed “News Bargaining Incentive,” major digital platforms with more than A$250 million in annual local revenue would face the charge if they fail to negotiate agreements to pay publishers for news content shared on their services. The funds raised would then be redirected to support Australian journalism, with payments linked to the number of journalists employed.

Communications Minister Anika Wells said the policy reflects the growing role of social media and search platforms as major news sources for Australians.

“People are increasingly getting their news directly from Facebook, TikTok and Google, and we believe it’s only fair that large digital platforms contribute to the hard work of journalism that enriches their feeds and drives their revenue,” she said.

Prime Minister Anthony Albanese dismissed concerns about possible retaliation from US President Donald Trump, whose administration has opposed digital taxes targeting American tech firms.

“We’re a sovereign nation, and my government will make decisions based on the Australian national interest,” Albanese said.

Meta strongly criticised the proposal, calling it “simply wrong” and arguing it would create a government-backed subsidy scheme for news organisations. Google also said it rejected the need for the tax, while TikTok declined to comment.

The new measure is designed to replace Australia’s 2021 media bargaining laws, which required platforms to pay for news content but were seen as becoming less effective after some deals expired.

Author – Mohammed Najem

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