Australia to tax tech giants over media payments

By Alimat Aliyeva

The Australian government has increased the size of a planned levy that would require major technology companies to pay millions of dollars if they fail to reach commercial agreements with local media organizations for using news content on their platforms, AzerNEWS reports.

Officials announced that the levy rate under the planned News Bargaining Incentive Scheme will rise from 2.25% to 2.5%. The measure is designed to encourage negotiations between global technology companies and Australian news publishers over compensation for the distribution of journalistic content.

Unlike the original proposal, the new levy will be calculated only based on a company’s advertising revenue generated in Australia, rather than its total commercial income. The fee will apply to digital platforms with a significant presence in the Australian market, including major social media and search services, as well as companies earning more than A$175.7 million locally. The rules are expected to affect companies such as Meta, Google, and TikTok. The government has also removed an exemption for professional networking platforms, meaning LinkedIn could now fall under the legislation as well.

According to Australian officials, all money collected through the levy will be directed toward the media industry to support local journalism and help maintain independent news organizations.

The move comes amid a wider global debate over how technology companies should compensate publishers for using news content. Australia previously introduced a similar approach in 2021, becoming one of the first countries to require platforms such as Google and Meta to negotiate payments with news providers.

The proposed legislation is expected to be presented to Parliament when it resumes later this month. If approved, the new rules could become another major step in Australia’s efforts to reshape the relationship between digital platforms and traditional media.