Australia Proposes 2.25% Revenue Tax On Meta, Google, TikTok For News
Australia released draft legislation on Tuesday, April 28, 2026, proposing a 2.25% tax on Australian revenue of Meta, Google and TikTok to fund local newsrooms.
The proposed News Bargaining Incentive would levy a 2.25% charge on Australian revenue of Meta, Google and TikTok, with offsets for platforms that reach commercial deals with publishers. The government says the levy would raise A$200-A$250 million annually and distribute funds based largely on the number of journalists a news organization employs, Communications Minister Anika Wells said. Meta and Google immediately criticized the plan as a digital services tax divorced from actual news use and warned it would create a subsidized news industry.
The episode traces back to the 2021 News Media Bargaining Code, which forced large platforms to negotiate payments with publishers after Australia threatened designation. Meta briefly blocked news on Facebook in February 2021 before signing multi-year deals; those agreements began expiring in 2024 and Meta said on March 1, 2024 it would not renew them and later shut its Facebook News tab. The loss of those payments strained the sector and pushed the government to create a new mechanism to ensure ongoing support for journalism. In 2025 Meta's Australian ad revenue topped A$1.7 billion and Google's was about A$2.0 billion, while roughly 23,000 journalists were employed in Australia as of February 2026.
The draft has drawn global comparisons to other tech-news rules, like Canada's online news law that prompted both platform payments and news blackouts. Supporters, including the prime minister, say the levy forces tech firms to pay for benefits they extract from local journalism. On social media, advocates praised Australia for asserting digital sovereignty, while critics warned the measure could become a government subsidy for struggling outlets.
Supporters of the proposed tax, including Prime Minister @AlboMP, argue that it addresses the imbalance in how tech companies profit from local journalism without contributing fairly to its sustainability. They emphasize that the estimated A$200-A$250 million generated annually could provide vital support to the 23,000 journalists in Australia, who face ongoing employment declines. Critics, however, raise concerns that the tax may inadvertently become a government subsidy for struggling news outlets, as noted by @MyNews366, questioning whether this is the right mechanism for ensuring media resilience. Meta's sharp criticism of the draft legislation, labeling it a misguided approach, reflects broader tensions in the media-tech ecosystem, where digital platforms dominate advertising revenue, contributing to a funding crisis in traditional journalism.
The global context also adds depth to the discussion, as seen in Canada's recent Online News Act, which led to similar tensions with Meta and Google. The Australian proposal is part of a trend where governments are increasingly intervening in the media landscape to ensure that tech giants contribute to the public good. A report by Nic Newman highlights that the decline in traditional journalism funding is exacerbated by digital platforms reducing referral traffic, making such legislative measures more critical as the industry grapples with evolving challenges.
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📊 Relevant Data
In 2025, Meta's gross advertising revenue in Australia exceeded A$1.7 billion.
Sucking Profits Out Of Australia: Meta Sends $1.5B Revenue Overseas — B&T
In 2025, Google's reported revenue in Australia was approximately A$2.0 billion.
Google Australia Pty Ltd - Company Profile Report — IBISWorld
As of February 2026, approximately 23,000 journalists and other writers were employed in Australia, with employment declining by 300 annually.
Journalists and Other Writers — Jobs and Skills Australia
Under Canada's 2023 Online News Act, which requires digital platforms to compensate news publishers, Meta blocked all news content on its platforms in Canada, while Google agreed to pay C$100 million annually into a fund for Canadian news media.
Google and Canada reach deal to avert news ban over Online News Act — BBC
📌 Key Facts
- On Tuesday, April 28, 2026, Australia released draft legislation to tax major digital platforms that do not pay for news.
- The proposed News Bargaining Incentive would levy a 2.25% tax on Australian revenue of Meta, Google and TikTok, with offsets for platforms that sign deals with publishers.
- The government estimates the measure would raise A$200–A$250 million per year, roughly matching prior payments under the 2021 News Media Bargaining Code.
- Revenue would be distributed to news organizations based on the number of journalists they employ, according to Communications Minister Anika Wells.
- Meta and Google oppose the plan, branding it a digital services tax disconnected from actual news usage and warning it will create a subsidized news industry.
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