Australia Proposes 2.25% Levy on Tech Giants to Fund Local Journalism

On 28 April 2026 the Australian government released an exposure draft of the News Bargaining Incentive (NBI). The plan would levy 2.25 percent of Australian revenue on Meta, Google and TikTok unless they sign deals to pay Australian news publishers for the use of their content. It applies to firms with revenue above A$250 million and at least five million social-media users or ten million search users. Collected funds would be allocated to news outlets based on journalist headcount, with offset credits of up to 150 percent for traditional-media deals and up to 170 percent for smaller publishers. The government expects the scheme could raise up to A$250 million annually.

The GuardianThe Sydney Morning HeraldReutersThe Straits TimesThe Independent

Prime Minister Anthony Albanese and Communications Minister Anika Wells introduced the NBI, with Assistant Treasurer Daniel Mulino outlining the revenue and user thresholds. A joint statement from major Australian media groups—including the ABC, Nine Entertainment, News Corp Australia, Network Ten, SBS and Guardian Australia—supported the plan. A University of Canberra survey found over half of Australians get news from social-media, reinforcing the government’s view that platforms profit from journalism. Albanese said Australia will act in its sovereign interest; Wells noted levy proceeds will be directed to newsrooms, not the Commonwealth treasury. Mulino confirmed AI services such as OpenAI are excluded.

The Guardian

Meta’s spokesperson called the proposal “nothing more than a digital services tax” and denied that the company appropriates news content. Google’s representative said the draft “ignores the fact that Google already has commercial agreements with the news industry” and rejected the levy. Both firms questioned why other platforms are not covered. President Donald Trump warned of possible retaliatory tariffs against nations imposing digital services taxes, a warning Albanese said does not affect Australia’s sovereign decisions.

The Sydney Morning Herald

Sources differ on the offset formula: some cite a 150 percent credit for traditional-media deals, others a 170 percent credit for smaller publishers. The draft also lacks a detailed algorithm for allocating funds by journalist headcount and does not define “news content” that triggers the levy.

The Guardian

• “Platforms should do deals with news organisations. If they decide not to, they will end up paying more,” — Anika Wells, Communications Minister

Reuters

• “News organisations voluntarily post content on our platforms because they receive value from doing so,” — Meta spokesperson

The Straits Times

• “We’re a sovereign nation. And my government will make decisions based upon the Australian national interest.” — Anthony Albanese, Prime Minister

Reuters

• “While we are currently reviewing the draft legislation, we have been clear: we reject the need for this tax,” — Google spokesperson

Reuters

The public consultation on the NBI runs until May 2026. Afterward the draft will be tabled in the winter sitting of Parliament, expected in July–August 2026. If passed, the levy would begin in the 2025-26 financial year on 1 July 2025.

The Independent