Australia

Australia Proposes 2.25% Tax on Meta, Google, TikTok

Is the News Media Bargaining Incentive a vital lifeline for Australian journalism or a flawed Labor power grab?

Published APR 28

Australia Proposes 2.25% Tax on Meta, Google, TikTok

Story

Above: A photo illustration of the Meta logo displayed on a smartphone with the Australian flag in the background, created on April 10, 2025. Image credit: Avishek Das/SOPA Images/LightRocket/Getty Images

The Facts

The Australian government released draft legislation on Tuesday that would require major digital platforms — including Meta, Google and TikTok — to pay a 2.25% tax on their Australian revenue if they fail to agree on commercial deals with local news publishers.
Prime Minister of Australia
News.com.au
The Associated Press
The proposed News Media Bargaining Incentive would allow platforms to reduce their charge by 150% of the value of the deals they make with traditional media outlets and 170% for agreements with smaller news organizations, lowering their effective rate to around 1.5%.
Australian Treasury
Prime Minister of Australia
The government expects the incentive to generate between AU$200 million and AU$250 million annually ($143.6-179.4 million), which would be distributed to news organizations based on the number of journalists they employ, according to Communications Minister Anika Wells.
Prime Minister of Australia
Tech giants, however, condemned the proposal, which Meta described as "nothing more than a digital services tax" and a "government-mandated transfer of wealth" that would fail to produce a "sustainable or innovative news sector." Google also rejected the measure, citing existing deals with news businesses in Australia.
Press Gazette
Australian Financial Review
France 24
Major Australian media organizations, meanwhile, including the ABC, News Corp Australia, Nine Entertainment Co. and The Guardian Australia, welcomed the incentive, which they described in a joint statement as a "critical step toward securing the future of Australian news."
ABC Australia
The Guardian Australia
The draft News Media Bargaining (Administration) Bill 2026 is open for public consultation until May 18, following which Australian Prime Minister Anthony Albanese said the government intends to introduce the bill during the winter sitting period.
Australian Treasury
Australian Treasury
Prime Minister of Australia

Sources Split

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The Spin

Australian Labor Party narrative

For years, large digital platforms have profited off Australian journalism without paying their fair share; that ends now. The government's News Media Bargaining Incentive will encourage platforms to strike evenhanded deals with local publishers, while laying the foundations for sustainable journalism that will serve as the bedrock of a strong Australian democracy.

Anika Wells on Facebook

Prime Minister of Australia

Liberal/National Coalition narrative

No one should trust Labor, nor its new incentive. After all, they sat idle for years while the Coalition's world-leading News Media Bargaining Code collapsed, leaving newsrooms and regional papers in limbo, and did nothing to hold big tech accountable. Now, Labor wants to impose its own measures and control the funding, but with no guarantee or reason to believe they will do so fairly.