Australia threatens tech companies with 2.25 percent tax if they don’t pay publishers
Australia has proposed a 2.25 percent tax on the local revenue of large tech companies that do not strike payment deals with Australian media publishers, as a replacement for its earlier News Media Bargaining Code. The new 'News Bargaining Incentive' targets firms making over AU$250 million annually and aims to fund journalism by incentivizing agreements with qualified local media outlets. The move follows previous disputes where companies like Meta restricted news sharing in response to regulatory pressure. The government hopes the measure will support a struggling media sector while encouraging tech firms to contribute to public interest journalism.
- ▪Australia's proposed News Bargaining Incentive would impose a 2.25 percent tax on the local revenue of social media and search companies earning over AU$250 million annually if they don't pay Australian publishers.
- ▪Tech companies can avoid the tax by entering into government-approved deals to fund journalism or license content from eligible Australian media organizations.
- ▪Eligible media outlets must earn at least AU$150,000 annually, serve Australian audiences, and meet professional standards such as having a complaints mechanism.
- ▪Meta previously blocked news content sharing in Australia and Canada in response to similar legislation, raising concerns about potential backlash.
- ▪The policy aims to support financially struggling local media and ensure tech companies contribute to the sustainability of professional journalism.
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Legal 7 Australia threatens tech companies with 2.25 percent tax if they don’t pay publishers 7 Last time an idea like this came up, Meta packed up its toys and went home Simon Sharwood Tue 28 Apr 2026 // 07:20 UTC Australia has come up with a new way to ensure social media and search companies pay to support journalism: a 2.25 percent tax on revenue that’s avoidable if companies instead do deals with local media. The Land Down Under floated the scheme as a replacement for the 2021 News Media Bargaining Code that put a nominal value on links to news content shared on social media, and strongly suggested the likes of Google and Meta to negotiate with local publishers to agree on fee to secure permission to share links. If tech companies didn’t come to the table, they faced forced arbitration. During negotiations, Meta decided it would not allow its users to share links to news stories in Australia. The social media giant later relented in Australia and struck deals with some local publishers. <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2afBvi9CWnBOfnxc66UmyUQAAAYY&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2afBvi9CWnBOfnxc66UmyUQAAAYY&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0" alt=""> </a> But when Canada introduced a similar law, Meta stopped allowing its local users to share news links to make itself ineligible for payments – and maintains that position to this day. <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44afBvi9CWnBOfnxc66UmyUQAAAYY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44afBvi9CWnBOfnxc66UmyUQAAAYY&t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0" alt=""> </a> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33afBvi9CWnBOfnxc66UmyUQAAAYY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33afBvi9CWnBOfnxc66UmyUQAAAYY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0" alt=""> </a> As deals struck under the News Media Bargaining Code came up for renewal, Meta said it wouldn’t play ball. So Australia’s government changed the rules. <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44afBvi9CWnBOfnxc66UmyUQAAAYY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0" target="_blank"> <img…
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