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The Australian government has increased a proposed levy on major technology companies that fail to negotiate commercial agreements with local news publishers, as part of efforts to strengthen funding for public interest journalism.
The government announced on Monday that the proposed News Bargaining Incentive levy will rise to 2.5% from the previously proposed 2.25%.
Under the revised proposal, the levy will be calculated solely on a company’s advertising revenue rather than its total Australian revenue, narrowing the tax base while increasing the rate to maintain the expected level of funding for news organisations.
The measure will apply to digital platforms operating significant social media or search services in Australia with annual local revenue exceeding A$250 million (approximately $176 million). Companies expected to fall within its scope include Meta, Google, TikTok and LinkedIn, after the government removed an earlier exemption for professional networking platforms.
Assistant Treasurer Daniel Mulino said the revised structure better aligns the levy with the advertising businesses that benefit from news content while ensuring funding for the media sector keeps pace with future growth in digital advertising.
“We’ve upped the charge rate from 2.25 to 2.5% to make sure that the overall amount of money raised by the deals entered into by these platforms with the media is about the same,” Mulino told ABC Radio National.
He added that linking the levy to advertising revenue would ensure contributions increase as platforms generate higher advertising income.
The government said all proceeds raised through the scheme would be directed to Australia’s news media industry to support local journalism.
The legislation is expected to be introduced when Parliament resumes later this month
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