Australia to make Google, Meta, TikTok pay for news or face 2.25% levy

In an era where news is increasingly consumed through scrolling feeds rather than front pages, Australia is attempting to redraw the rules of engagement between technology platforms and journalism.

The government’s latest proposal places some of the world’s most powerful digital companies at a crossroads, strike deals with publishers or pay up.

At the centre of the plan is a 2.25 per cent levy on local revenues targeting companies such as Google, Meta and TikTok. However, the charge is designed less as a penalty and more as leverage. Platforms can avoid it entirely by entering commercial agreements with news organisations, a mechanism the government hopes will revive a struggling media ecosystem.

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Prime Minister Anthony Albanese framed the issue, "We’re taking the next steps to make sure platforms contribute to Australian news. Because there's no substitute for Australian news and stories told by Australian journalists."

Why the levy now? Big Tech news payments and Australia’s policy shift

The timing of the proposal is not accidental.

Australia’s earlier attempt to regulate platform payments, the News Media Bargaining Code, had initially forced deals worth hundreds of millions. But its effectiveness faded after Meta declined to renew agreements reportedly valued at around $70 million, exposing the fragility of the system.

The new News Bargaining Incentive (NBI) model is designed to fix those gaps. Instead of relying on negotiation pressure alone, it introduces a financial backstop. Companies with more than $250 million in annual Australian revenue and significant user bases will be subject to the scheme.

Communications minister Anika Wells underscored the rationale, “People are increasingly getting their news directly from Facebook, from TikTok, and from Google,” reports the Guardian.

“And we believe it’s only fair that large digital platforms contribute to the hard work of journalism that enriches their feeds and that drives their revenue,” she added.

To encourage compliance, the government is offering offsets of up to 170 per cent for companies that strike deals, particularly with smaller publishers. The expectation is that this will generate as much as $250 million annually for the sector, not through taxation alone, but through renewed partnerships.

Australia’s biggest publishers under threat from declining tech deals

Behind the policy lies a deeper concern: the long-term viability of journalism itself.

Major media organisations, including public broadcasters and private publishers, have warned that without sustained funding, the industry risks contraction. Previous agreements with platforms had enabled newsrooms to hire journalists and invest in digital transformation. Their withdrawal has left a noticeable gap.

In a rare show of unity, leading publishers issued a joint statement arguing that journalism is “under threat” and that platforms must step up.

“If digital platforms fail to pay for the use of the news content from which they profit then journalism becomes unsustainable,” the statement said, adding that access to “reliable, professionally created news” is in the public interest.

The government’s proposal also includes provisions to prioritise outlets employing Australian journalists and potentially those serving multicultural audiences, a recognition that diversity in media is as critical as its survival.

But, it will not cover OpenAI and other AI platforms using news content

Notably absent from the scheme are artificial intelligence platforms such as OpenAI.

Despite growing concerns that AI systems use news content to generate responses and summaries, the government has chosen to address this issue separately. Assistant treasurer Daniel Mulino described it as a “key policy issue” still under review, pointing to ongoing discussions around copyright and AI regulation.

For now, the focus remains firmly on social media and search giants.

The outcome of this policy could ripple far beyond Australia. Governments worldwide are grappling with similar questions about how to sustain journalism in a digital economy dominated by platforms.

Whether the levy succeeds in forcing meaningful change, or triggers pushback from global tech companies and international partners, remains to be seen.

What is clear is that Australia is once again positioning itself at the forefront of a debate that sits at the intersection of technology, media, and democracy.