Australia Increases News Levy to 2.5% for Tech Giants

The Australian government announced a revised News Bargaining Incentive plan to compel tech giants such as Google, Meta, and TikTok to reach commercial agreements with domestic media organizations. Under the updated proposal, the maximum levy for companies with domestic revenues of $250 million or more will increase from 2.25 percent to 2.5 percent. To avoid this tax, companies must now secure at least six agreements with publishers, up from four.

Assistant Treasurer Daniel Mulino detailed a significant shift in the charge-base, moving from total business revenue to digital advertising revenue. He stated this change targets the specific part of a company's business that utilizes news content. The legislation also removes previous exemptions for professional networking sites like LinkedIn. While Mulino defended the measure as consistent with free-trade obligations with the United States, the plan comes amid trade tensions and a 12.5 percent U.S. tariff on Australian goods.

Communications Minister Anika Wells argued that the incentive will diversify the media landscape and support regional publishers, with 5 percent of raised funds earmarked for small publishers and start-ups. However, Greens Senator Sarah Hanson-Young criticized the exclusion of AI companies like OpenAI from the requirements. Meta has condemned the effort as a poorly designed government-administered subsidy regime that is grossly unfair to the industry. The government expects to introduce the legislation to parliament in late August 2026.