The Albanese government has unveiled its proposed design for the News Bargaining Incentive (NBI), a plan to make large digital platforms pay for news content in Australia. Replacing the Morrison government's News Media Bargaining Code (NMBC), the incentive is the latest move to force companies to make commercial deals with publishers and help fund journalism.
How the New Levy Works
Platforms including Google, Meta, and TikTok will be required to enter commercial deals with Australian media outlets, or they will face a dedicated 2.25% levy on their local revenues. Treasury states that the money raised will go toward ensuring the sustainability of Australian news and journalism, with no revenue retained by the government.
If platforms and media outlets agree on deals, offsets of between 150% and 170% will be applied to their liabilities under the NBI, effectively saving them from paying the full levy. The federal government will collect the revenue and pass it on to media outlets, with the amount determined by the number of full-time journalists employed. Outlets in rural and regional areas, small operators, and those representing multicultural or marginalized communities will receive additional funding through weighting rules.
Why the Government Is Acting Now
The NBI replaces the NMBC, which Labor argues is no longer effective. Two years ago, 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 their platforms. This withdrawal severely undermined the previous scheme, and media outlets have pressured the government to use legal force to secure new agreements.
Labor first proposed the new model in late 2024. Prime Minister Anthony Albanese stated on Tuesday that strong journalism is critical to a healthy democracy. Consultation on the discussion paper is open until May 18, with the government planning to introduce the new laws in parliament during the winter sittings in May and June.
Which Platforms Are Affected
Platforms will undergo a two-limb test for participation. They must have minimum revenues of $250 million and either have more than 5 million users in Australia (for social platforms) or 10 million or more users (for search businesses). News businesses must be registered 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 excluded because they employ editorial teams internally.
Reactions to the Proposal
A joint statement from the heads of major media companies—including Nine, the ABC, News Corp, and Guardian Australia—urged parliament to pass the plan to protect Australian journalism and its vital role in democracy. The Greens want a big tech tax to stop platforms from ripping off content from 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, misunderstands the advertising market, and unfairly exempts players like Microsoft, Snapchat, and OpenAI. A Meta spokesperson argued that news outlets benefit from posting on their platforms and that a government-mandated transfer of wealth would not deliver a sustainable or innovative 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 and that failure to engage will carry consequences.
Potential Impact of US President Trump
US President Donald Trump has threatened retaliation against countries that treat US platforms unfairly, which has delayed Labor's plans due to fears of his reaction. When asked if he discussed the plan with Trump, Albanese stated that Australia is a sovereign nation and his government will make decisions based on the Australian national interest. Criticism from Trump would likely play into domestic politics and the broader shift in the US-Australia alliance.
