Australia Proposes Tax on Meta, Google, and TikTok to Fund Local Journalism

By: Harsh Vardhan

|

Updated on: 29-Apr-2026 07:00 PM

703 views

Follow Us:

703 views

The Australian government announced on Tuesday that Meta, Google, and TikTok may face multimillion-dollar charges if they do not negotiate agreements to pay local media outlets for news content on their platforms. The proposed News Bargaining Incentive would impose a 2.25% tax on the local revenues of these companies unless they reach deals with Australian news organizations. The funds collected would support local journalism.

Key Highlights

• Australia proposes a 2.25 percent tax on Meta, Google, and TikTok local revenues for news funding.
• Tax targets companies with over A$250 million in Australian revenue starting from July 2025.
• Funds collected will support local journalism based on the number of journalists employed.
• Media organizations support the plan while Meta and Google oppose the proposed tax.

Details of the Proposed Legislation

The draft law targets companies with significant social media or search services in Australia and local revenues exceeding A$250 million (US$179.3 million). This threshold captures Meta, Google, and TikTok. The tax would begin in the 2025-26 financial year, starting July 1, 2025. Artificial intelligence platforms are excluded from this legislation and are regulated separately.

Communications Minister Anika Wells stated that more Australians are getting news from platforms like Facebook, TikTok, and Google. She emphasized that large digital platforms should contribute to journalism, which enriches their services and generates revenue for them. Wells said, "Platforms should do deals with news organisations. If they decide not to, they will end up paying more."

Under the proposal, if a platform does not reach an agreement with a news publisher, the tax proceeds will be distributed to news organizations based on the number of journalists they employ. Platforms that make deals with smaller organizations will receive larger offsets.

Reactions from Stakeholders

Australia's largest media outlets, including Nine Entertainment, ABC, and News Corp Australia, issued a joint statement supporting the plan. They described it as a "critical step toward securing the future of Australian news." The statement warned that journalism becomes unsustainable if digital platforms do not pay for the news content from which they profit.

Meta disagreed with the proposal, arguing that the company does not take news content from publishers. A Meta spokesperson said the levy would create a news industry dependent on government-administered subsidies. They also described the legislation as a digital services tax, regardless of whether news content appears on their platforms.

Google also opposed the plan. A spokesperson said the company is reviewing the draft legislation but rejects the need for the tax. TikTok declined to comment on the proposal.

The News Bargaining Incentive is intended to replace 2021 laws that required tech firms to pay for news content. The government said the previous rules were no longer effective. After the 2021 law, Meta temporarily blocked users from reposting news articles but later reached agreements with Australian media companies. These deals expired in 2024.