Australia Makes Big Tech Pay for News or Face Tax

Australia is standing up for its journalists, and this time Big Tech can't wriggle out of paying for the news content that fills their platforms.

The Australian government unveiled draft legislation on Tuesday that requires companies like Meta, Google, and TikTok to strike deals with local news publishers or face a 2.25% levy on their Australian revenues. The more agreements platforms make with media outlets, the lower their tax rate drops, potentially funneling up to $250 million back into Australian journalism.

"Journalists are the lifeblood of Australia's media sector, playing a vital role in keeping communities informed," Prime Minister Anthony Albanese said. Communications Minister Anika Wells added that people increasingly get their news directly from these platforms, making fair compensation essential.

This is Australia's second attempt to make Big Tech fund journalism, and they learned from their mistakes. The country's 2021 News Media Bargaining Code had a fatal flaw: platforms could simply remove news content to avoid paying. Meta did exactly that in 2024, triggering widespread job cuts across Australian newsrooms.

The new News Bargaining Incentive fixes that loophole completely. Platforms get taxed whether they carry news or not, period.

The legislation also breaks new ground by including TikTok for the first time. AI services are explicitly excluded for now while copyright issues are examined separately.

When asked about potential pushback from the White House, which has opposed digital services taxes on U.S. tech companies, Albanese was clear. "We're a sovereign nation, and my Government will make decisions based upon the Australian national interest," he said at a press conference.

If passed, platforms have until July to comply.

The Ripple Effect

Australia isn't fighting this battle alone. Canada, Brazil, and the EU have all taken on Big Tech over news funding with mixed results. South Africa offers perhaps the clearest success story, with regulators brokering deals that secured roughly $40 million for local news outlets over five years.

Australia's approach could provide a blueprint for other countries struggling to keep quality journalism alive in the digital age. By closing the opt-out loophole, they've created a system where platforms that profit from news content must contribute to creating it.

The draft legislation sends a powerful message: journalism matters, and the companies benefiting from it need to pay their fair share.