The Australian federal government has finalized its proposed News Media Bargaining Incentive, a legislative framework designed to ensure major technology platforms compensate local news organizations for the content they host. Under the updated plan, large digital platforms that generate at least $250 million in annual Australian digital advertising revenue will face a 2.5% levy if they fail to reach commercial agreements with local publishers. This represents an increase from the 2.25% rate initially proposed in draft legislation released earlier this year.
To avoid the levy, tech companies must strike commercial deals with a minimum of six news outlets. The government has narrowed the scope of the revenue calculation, focusing specifically on digital advertising income attributable to the Australian market rather than broader gross revenue. This shift aims to provide a more targeted approach to the financial liability, while still incentivizing platforms to maintain active licensing agreements with a diverse range of media organizations.
Professional networking platforms, such as Microsoft-owned LinkedIn, are now included in the scope of the legislation, reflecting the government's view that news distribution is no longer confined to traditional social media feeds. The initiative is intended to replace the existing News Media Bargaining Code, which officials argue has become less effective over time. Funds collected from companies that do not reach agreements will be redistributed to the media sector through a dedicated payment scheme.
Legislation for the incentive is expected to be introduced in parliament in the coming weeks. While the government maintains that the policy is essential for the sustainability of Australian journalism and the health of the nation's democracy, the proposal continues to face scrutiny from various stakeholders regarding its potential impact on market dynamics and the accessibility of funding for smaller, independent publishers.