The Federal Government has increased the proposed levy on major digital platforms that do not reach commercial agreements with Australian news publishers, as it finalises changes to its News Bargaining Incentive ahead of introducing legislation to Parliament.
Under the revised proposal, the levy will increase from 2.25 per cent to 2.5 per cent. However, instead of applying to a platform’s total Australian revenue, it will now be calculated using Australian digital advertising revenue. Assistant Treasurer Daniel Mulino said the higher rate is intended to maintain the overall value of the scheme despite the narrower revenue base.
The News Bargaining Incentive is designed to encourage operators of significant search engines and social media platforms to negotiate or renew commercial agreements with eligible Australian news businesses. Platforms that choose not to enter qualifying deals would be required to pay the levy, with revenue collected directed to support Australia’s news media sector.
The revised model would apply to platforms with more than A$250 million in Australian revenue, including Google, Meta and TikTok. The Government has also removed a previously proposed exemption for professional networking services, bringing LinkedIn within the scope of the legislation.
Speaking to ABC Radio National, Mulino said the revised calculation better aligns the charge with the advertising business of digital platforms while preserving the intended level of support for Australian journalism.
“The charge-base for the News Bargaining Incentive will be advertising revenue,” said Mulino.
He said the increase in the levy rate would ensure the overall amount raised through agreements with news publishers remained broadly consistent under the revised approach.
The proposal builds on draft legislation released for consultation earlier this year. Under the model, platforms can reduce or eliminate their liability by entering commercial agreements with eligible news publishers, with the Government describing negotiated deals as the preferred outcome.
The legislation is expected to be introduced when Parliament resumes later this month. While the Government says the revised model maintains a strong incentive for platforms to negotiate with publishers, some media organisations have argued the move to an advertising revenue base could weaken the scheme by reducing the financial exposure for technology companies.
