The Albanese government has unveiled its proposed design for the News Bargaining Incentive (NBI), a plan to compel large digital platforms such as Google, Meta, and TikTok to pay for news content in Australia. This initiative replaces the previous News Media Bargaining Code (NMBC) introduced by the Morrison government, aiming to force tech companies to strike commercial deals with publishers and support journalism.
How the New Levy Works
Under the NBI, platforms with Australian revenues exceeding $250 million and user bases over 5 million (for social media) or 10 million (for search engines) will be required to enter into commercial agreements with Australian media outlets. If they fail to do so, they will face a dedicated levy of 2.25% on their local revenues. The Treasury states that the funds raised will be directed toward ensuring the sustainability of Australian news and journalism, with the government retaining no revenue.
Offsets and Weighting
If platforms and media outlets agree on new deals, offsets of between 150% and 170% will be applied to their liabilities under the NBI, effectively reducing or eliminating the levy. The federal government will collect the revenue and distribute it to media outlets based on the number of full-time journalists they employ. Outlets in rural and regional areas, small operators, and those representing multicultural or marginalized communities will receive additional funding through weighting rules.
Why the Change Now?
The NBI replaces the NMBC, which Labor argues is no longer effective after Meta, the parent company of Facebook and Instagram, announced it would not renew deals worth approximately $70 million to compensate for news content shared on its platforms. This withdrawal undermined the original scheme, prompting media outlets to pressure the government to use legal powers to enforce new agreements. Labor first proposed the NBI in late 2024, and Prime Minister Anthony Albanese emphasized that strong journalism is critical to a healthy democracy. Consultation on the discussion paper is open until May 18, with plans to introduce legislation in parliament during the winter sittings in May and June.
Which Platforms Are Affected?
Platforms will be subject to a two-limb test: they must have minimum revenues of $250 million and either more than 5 million Australian users (for social media) or 10 million users (for search businesses). News businesses must register with the Australian Communications and Media Authority, meeting criteria covering revenue, content, professional standards, editorial independence, Australian audiences, and connection to a relevant news product. LinkedIn and Apple are expected to be exempt because they employ editorial teams internally.
Reactions to the Proposal
A joint statement from major media companies including Nine, the ABC, News Corp, and Guardian Australia urged parliament to pass the plan, stating that digital platforms paying for reliable, professionally created news is in the public interest. The Greens have called for a big tech tax to prevent platforms from ripping off journalists and creators, and they will study the government's proposal. Shadow Communications Minister Sarah Henderson did not indicate a position but criticized Labor for letting the Coalition-era model collapse.
Google rejected the need for the new tax, claiming it ignores existing deals and misunderstands the advertising market while unfairly exempting competitors like Microsoft, Snapchat, and OpenAI. A Meta spokesperson argued that news outlets benefit from posting on its platforms and that a government-mandated transfer of wealth will not create a sustainable news sector. Former competition tsar Allan Fells, now chair of the Public Interest Journalism Initiative, welcomed progress but stressed that platforms must understand participation is not optional.
International Implications
US President Donald Trump has threatened retaliation against countries treating US platforms unfairly, causing delays in Labor's plans. Albanese stated that Australia is a sovereign nation and will make decisions based on national interest, regardless of potential criticism from Trump, which could affect domestic politics and the US-Australia alliance.
