Australia has introduced draft legislation that could impose a tax on major technology companies such as Meta, Google and TikTok if they fail to voluntarily compensate local news organisations for content shared on their platforms.
The proposed policy aims to support struggling traditional media outlets, which have faced declining revenues as audiences increasingly consume news through social media platforms rather than conventional sources.
Under the draft plan, tech companies would be given the opportunity to negotiate commercial agreements with Australian publishers. If they refuse, they could be subject to a levy of 2.25 per cent of their Australian revenue.
Prime Minister Anthony Albanese said the legislation ensures that major digital platforms cannot evade responsibilities under the country’s news media bargaining framework. He confirmed that companies involved include Meta, Google and TikTok.
He added that platforms reaching agreements with local media would receive significant offsets against the levy, potentially generating between A$200 million and A$250 million, with funds directed towards supporting journalism in Australia.
The government said the changes are intended to close loopholes in earlier media laws, which allowed companies to avoid payments by removing news content entirely from their platforms — a move previously taken by Meta in Australia and other markets.
Officials argue that tech giants benefit financially from news content that drives user engagement and advertising revenue, while publishers receive little compensation in return. The new framework seeks to rebalance that relationship.
However, Meta has criticised the proposal, describing it as a form of digital services tax. A company spokesperson said news organisations voluntarily publish content on its platforms and disputed claims that it unfairly uses their material.
The draft laws are now open for public consultation until May, after which they are expected to be introduced into parliament later this year, marking another major step in Australia’s efforts to regulate global tech companies.
