The Australian government has refined its proposed News Bargaining Incentive, a policy designed to ensure major digital platforms compensate local news publishers for content. Under the updated plan, tech giants earning at least A$250 million in Australian digital advertising revenue will face a 2.5% levy unless they secure commercial agreements with news organizations. This represents an increase from the previously proposed 2.25% rate, though the government has narrowed the calculation base to focus specifically on digital advertising revenue rather than total gross revenue. The legislation, expected to be introduced to parliament later this year, also expands the scope of the scheme to include professional networking platforms like LinkedIn, alongside search and social media services.
This initiative aims to support the sustainability of Australian journalism, which the government views as essential for a well-functioning democracy. By incentivizing direct deals, the policy encourages platforms to license content from a diverse range of media outlets, including smaller regional publishers. Companies that reach at least six agreements with news organizations can fully discharge their liability under the scheme. The government has framed these adjustments as a good-faith effort to balance the interests of global technology firms and local media companies following an extensive consultation period that concluded in May.
While the headline rate has risen, the shift to a narrower revenue base is seen by some analysts as a technical adjustment that may reduce the overall financial impact on tech companies. The policy builds on the framework of the 2021 News Media Bargaining Code, which previously mandated negotiations between platforms and publishers. As the government prepares to bring the bill to parliament in the spring, the focus remains on ensuring that digital platforms continue to contribute to the funding of public-interest journalism in Australia.