Tech giants face new levy to pay for Australian news as Meta calls position ‘simply wrong’

Google, Meta and TikTok will face a 2.25% levy on their local revenues unless they do deals with publishers under a draft news bargaining incentive scheme. Photograph: Danielle Villasana/ReutersView image in fullscreenGoogle, Meta and TikTok will face a 2.25% levy on their local revenues unless they do deals with publishers under a draft news bargaining incentive scheme. Photograph: Danielle Villasana/ReutersAnthony AlbaneseGoogle, Meta and TikTok face new levy to pay for Australian news as Albanese reveals media plan Government’s draft news bargaining incentive scheme includes 2.25% levy on local revenues of digital giantsJosh Butler and Tom McIlroyMon 27 Apr 2026 22.06 EDTLast modified on Mon 27 Apr 2026 22.07 EDTSharePrefer the Guardian on GoogleAnthony Albanese has urged Google, Meta and TikTok to make deals with Australian media outlets to avoid a dedicated 2.25% levy on local revenues, warning digital giants should not be able to exploit the work of journalists to boost profits.Releasing an exposure draft for the government’s news bargaining incentive (NBI) scheme on Tuesday, the prime minister said platforms who sign new deals with publishers to pay for news content would receive offsets of between 150% to 170% from the new levy.Any revenue collected will be directed to support Australian journalism.The NBI model replaces the Morrison government’s news media bargaining code (NMBC), which Labor says is no longer effective. The model comes more than two years after Meta, the parent company of Facebook and Instagram, said it would not renew deals worth about $70m to compensate for news content being shared on their platforms.The new model means digital platforms operating significant social media or search services can avoid the levy by entering into new commercial agreements with publishers.Labor first proposed the NBI in late 2024, as Meta and other platforms started side-stepping the the NMBC.Meta had accused a federal parliamentary committee of ignoring “the realities of how our platforms work”, and the value that Facebook and Instagram brought to news outlets.But Labor’s new plan could also prompt a backlash from US president Donald Trump, who has pledged to defend American platforms from additional taxes around the world.Labor’s initial plan for the NBI, outlined in December 2024, proposed to require digital platforms with Australian revenues of more than $250m, including Meta, ByteDance (TikTok) and Google, to participate in the scheme by either entering direct deals with news publishers or by paying a fixed charge, to prevent digital platforms refusing to carry news as a means to escape making deals.“We think that investment in journalism is critical to a healthy democracy,” Albanese said.“It matters. It’s something that defines the way that Australian society operates.“There’s no substitute for Australian news and stories being told by Australian journalists.”The government plans to introduce the draft legislation to parliament in the winter sitting period.A discussion paper released on Tuesday by the communications minister, Anika Wells, and the assistant treasurer, Daniel Mulino, proposes prioritising media outlets employing Australian journalists, while the model could also include prioritisation for multicultural publishers.Under the previous model, Google and Facebook agreed deals worth about $250m over three years. Media outlets used the revenue to hire more journalists and modernise news reporting.“Large digital…

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