Melbourne: Australia has proposed taxing digital giants such as Meta, Google, and TikTok a proportion of their revenue to fund news reporting. The government released draft legislation on Tuesday, aiming to create a financial incentive for social media companies to strike deals with news organizations.
Proposed Legislation Details
The government intends to introduce the bill in parliament by July 2. It would impose a 2.25% tax on the Australian revenue of major digital platforms that choose not to enter commercial agreements with news publishers. Platforms that do reach deals would receive offsets, lowering their overall costs.
Australian Prime Minister Anthony Albanese emphasized the need to attach monetary value to journalists' work. "It shouldn't just be able to be taken by a large multinational corporation and used to generate profits for that organisation with no compensation appropriate for the people who produce that creative content," Albanese said. "We think that investment in journalism is critical to a healthy democracy."
Background: News Media Bargaining Code
This proposal builds on Australia's 2021 News Media Bargaining Code, which pressured digital platforms to negotiate with news publishers. Previously, platforms like Meta and Google chose to reach commercial deals rather than face arbitration. However, some platforms have since avoided renewing those deals by removing news from their services.
The government expects the new incentive to raise between 200 and 250 million Australian dollars ($144 million to $179 million) annually. Communication Minister Anika Wells stated that the funds would be distributed among news organizations based on the number of journalists each employs.
Industry Reaction
Meta opposed the proposed legislation, arguing that news organizations voluntarily post content on their platforms and receive value from doing so. "The idea that we take their news content is simply wrong. This proposed legislation, which would apply to platforms regardless of whether news content even appears on our services, is nothing more than a digital services tax," Meta said in a statement.
