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Australia Unveils Draft Laws for News Bargaining Incentive
The Australian government has released draft legislation for the News Bargaining Incentive (NBI), a proposed law requiring large digital platforms to either reach commercial agreements with Australian news publishers or pay a levy on their local revenue.
The plan, which backdates to January 1, 2025, is intended to replace the previous News Media Bargaining Code (NMBC), which the government considers no longer effective.
Proposed Levy and Mechanism
Under the draft legislation:
- Large digital platforms with annual Australian revenue exceeding $250 million will face a charge of 2.25% on their gross Australian revenue if they do not enter into commercial agreements with news publishers.
- Platforms that sign commercial deals will have the charge reduced to 1.5% of revenue, with offsets of 150% to 170% against the levy.
- A single deal is capped at 25% of the total charge.
- The proposed levy applies to social media platforms with over 5 million Australian users and search engines with over 10 million users.
- Funds collected from the levy would be distributed to media outlets based on the number of full-time journalists they employ, with additional weighting for rural, regional, multicultural, and marginalized outlets. The government stated it will not retain any revenue.
- The levy applies regardless of whether the platforms display news content.
Affected Platforms
The legislation currently applies only to search and social media services, not to AI companies.
Platforms expected to be affected include Meta (Facebook, Instagram), Google, and ByteDance (TikTok). LinkedIn and Apple are expected to be excluded because they employ editorial teams internally. Google has questioned the exclusion of Microsoft, Snapchat, and OpenAI from the scope.
Eligible News Organizations
The NBI will apply to Australian news organizations with annual revenue over $150,000, including newspapers, magazines, TV news programs, radio programs, and websites.
News businesses must be registered with the Australian Communications and Media Authority based on criteria including revenue, content, professional standards, editorial independence, Australian audiences, and connection to a relevant news product.
Background
The previous News Media Bargaining Code (NMBC), established in 2021, pressured digital platforms to negotiate with news outlets. The initial code led to approximately $1 billion in payments over three years from Google and Facebook, totaling about $250 million per year.
However, the NMBC allowed platforms to avoid obligations by removing news from their services. In March 2024, Meta announced it would not renew its Australian news agreements, which were worth approximately $70 million, leaving Google as the only major platform with active commercial deals. The government first proposed the new model in late 2024.
Timeline and Consultation
- March 18, 2025: Draft legislation released for public consultation.
- May 18, 2025: Consultation feedback period closes.
- May–June 2025: Government plans to introduce draft legislation in Parliament.
- Mid-2025 (Target: July 2, 2025): Implementation aimed for this period.
Expected Revenue
The government estimates the levy would raise between $200 million and $250 million Australian dollars ($144 million to $179 million USD) annually for news organizations.
Platform Reactions
- Meta (Facebook, Instagram): Stated that news organizations voluntarily post content on its platforms and receive value from doing so. Meta called the proposed levy a "government-mandated transfer of wealth" and said it would not lead to a sustainable news sector. Meta has indicated it would remove news links if the law passes, similar to its actions in Canada.
- Google: Rejected the need for the tax, arguing it already has commercial agreements with news outlets, that the plan misunderstands advertising market changes, and that it unfairly excludes platforms like Microsoft, Snapchat, and OpenAI.
- TikTok: Did not immediately respond to requests for comment.
Government Position
Prime Minister Anthony Albanese stated that journalists' work has monetary value and should not be taken without compensation by multinational corporations.
He said investment in journalism is critical for a healthy democracy and that Australia makes decisions based on its national interest. Assistant Treasurer Daniel Mulino stated that large digital platforms have an important role in providing access to news and that the government would like them to work with news media on commercial deals benefiting both parties.
International Reaction
A White House spokesperson criticized the plan as "extortion," stating the US government would examine the details.
The Computer & Communications Industry Association (CCIA) called the proposal discriminatory and urged the US to consider retaliatory trade measures.
Industry and Political Reaction
- Major media organizations (ABC, Nine Entertainment, News Corp, Network Ten, SBS, Southern Cross Media, Australian Community Media, and The Guardian Australia) issued a joint statement supporting the legislation, stating "the future of local journalism is at stake."
- The Greens indicated they will study the proposal and support a "big tech tax."
- Shadow Communications Minister Sarah Henderson criticized the Labor government for allowing the previous model to collapse but did not state a position on the new proposal.
- Allan Fells, former chair of the Public Interest Journalism Initiative, welcomed progress but emphasized that "participation must be non-optional."
Meta Australia Financial Reporting
In related reporting, Meta's Australian subsidiary, Facebook Australia, reported gross advertising revenue of $1.74 billion from selected Australian customers in 2025, a 19% increase from $1.46 billion in 2024.
The company paid $1.51 billion to other Meta-owned entities for reselling ad inventory, resulting in net revenue of $223.9 million. After employee costs ($81 million) and income tax ($47.9 million), Facebook Australia posted a net profit of $61.2 million, up 26% year-over-year. The subsidiary paid a $120 million dividend to its US-based parent. The company employed 128 staff in Australia as of 2025.