Full Breakdown
Australia Proposes Levy on Tech Giants to Fund Local Journalism
4/28/2026, 8:53:28 AM
The News Bargaining Incentive Draft Law
On 28 April 2026 the Australian government released a draft “News Bargaining Incentive” (NBI) that would impose a 2.25 % levy on the Australian revenue of Meta, Google and TikTok unless the companies sign commercial agreements to pay local news publishers for the use of their content. The levy would be collected and redistributed to media outlets based on the number of journalists they employ.
From the 2021 Code to a New Incentive
The NBI replaces the 2021 News Media Bargaining Code (NMBC), which Labor argues has become ineffective after major platforms stopped renewing voluntary deals. Under the NMBC, Meta, Google and Facebook previously agreed to pay roughly $250 million over three years, while Meta later withdrew about $70 million in deals. The new model seeks to incentivise fresh agreements by offering offsets of up to 170 % against the levy for publishers that secure deals.
Main Actors
- Anthony Albanese – Prime Minister of Australia
- Anika Wells – Communications Minister
- Daniel Mulino – Assistant Treasurer
- Publishers – Executives from the ABC, News Corp, Nine and Guardian Australia
- Tech Companies – Meta (Facebook, Instagram), Google, TikTok
- AI Platforms – OpenAI and similar services (currently excluded)
Financial Structure and Targets
- Levy rate: 2.25 % of annual Australian revenue of each platform.
- Revenue threshold: AU$250 million.
- User thresholds: 5 million Australian users for social-media services; 10 million for search services.
- Expected annual revenue for journalism support: up to AU$250 million.
- Offsets: Platforms that negotiate deals may receive levy reductions of up to 170 %.
Government Rationale (Official Statements)
Prime Minister Albanese emphasized that “investment in journalism is critical to a healthy democracy” and warned that platforms “should not be able to exploit the work of journalists to boost profits.” Communications Minister Wells added that it is “only fair that large digital platforms contribute to the hard work of journalism that enriches their feeds and that drives their revenue.” Assistant Treasurer Mulino noted that artificial-intelligence services are being examined through separate policy forums, including copyright work led by the Attorney-General.
Publisher Endorsement
A joint statement from the ABC, News Corp, Nine and Guardian Australia described journalism as “under threat” and urged all platforms to “step up.” The publishers called the NBI “a critical step toward securing the future of Australian news” and said it protects “our democratic way of life.”
Opposition and International Concerns
Meta has accused a federal parliamentary committee of ignoring “the realities of how our platforms work” and highlighted the value its services provide to news outlets. Analysts note that the proposal could provoke a backlash from U.S. President Donald Trump, who has pledged to defend American platforms from additional taxes abroad. The exclusion of AI providers such as OpenAI from the levy has also drawn criticism for creating a policy gap.
Conflicting Reports & Gaps
- No comment has been received from Meta, Google or TikTok on the draft.
- The draft does not specify how the levy will be administered if platforms choose not to negotiate.
- The treatment of AI-generated news content remains unsettled, with the government indicating separate processes will apply.
Verbatim Quotes
- “Large digital platforms cannot avoid their obligations under the news media bargaining code,” — Anthony Albanese, Prime Minister
- “People are increasingly getting their news directly from Facebook, from TikTok, and from Google,” — Anika Wells, Communications Minister
- “AI is currently being examined through a range of other policy forums, including, for example, the work on copyright being led by the Attorney-General.” — Daniel Mulino, Assistant Treasurer
- “the realities of how our platforms work” — Meta, in response to parliamentary committee
What’s Next
The draft NBI legislation is slated for introduction to parliament during the winter sitting period. Subsequent consultations will address the inclusion of AI services and finalize the levy’s collection mechanisms. Negotiations between the government, publishers and the three tech firms are expected to intensify as the deadline approaches.
