The Federal Government is taking the News Bargaining Incentive to the next stage, to protect Australian journalism and make the tech giants pay for it. Photo: Michelle Kroll.
Social media companies will have to pay more to use Australian news content on their platforms unless they strike deals with media outlets, under new rules the Federal Government plans to implement.
Anthony Albanese unveiled draft laws on Tuesday (28 April), saying he was taking the News Bargaining Incentive to the next stage.
It encourages the social media companies to reach agreements with media companies to save themselves money.
If deals are made over content, the social media platforms will pay 1.5 per cent of revenue to the government.
If no agreements are reached, the tech companies will have to pay the higher 2.25 per cent levy.
“This is not about government revenue,” the Prime Minister told journalists at Parliament House.
“Every single dollar will go back to journalists to pay for the journalism that you all produce here in the [Press] Gallery, but newsrooms right around the country produce as well.”
The government is also developing the distribution mechanism to return any money collected by the scheme to the Australian news media sector.
A version of the News Bargaining Incentive was introduced by the Morrison government in 2021, but social media companies had abandoned any deals with Australian media outlets by 2024.
Mr Albanese said it was time to revisit the incentive.
“Our government is taking the next steps to ensure that Australian journalism is sustainable now and into the future by ensuring that large digital platforms cannot avoid their obligations under the News Media Bargaining Code,” the PM said.
“The News Bargaining Incentive will go to the next stage. We released a discussion paper in November. We had submissions in December. And today we’re releasing an exposure draft of the legislation.
“That is an exposure draft which will encourage dealmaking between the platforms and news organisations. It will envisage some 2.25 per cent of Australian revenue being paid.
“That can be offset through deals, by 150 per cent for deals done with traditional media and 170 per cent through deals done through smaller media organisations.
“We want to see these commercial arrangements occur. If they do occur, then it’s expected that that figure will drop to 1.5 per cent and will produce revenue of between $200 million and $250 million, which is the figure that was envisaged to be on the previous regime that has needed to be fixed.”
Communications Minister Anika Wells said it was vital that new agreements were entered into.
“People are increasingly getting their news directly from Facebook, from TikTok and from Google,” she said.
“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 … There has never been a more important time to ensure journalists are supported to keep Australians up to date with the latest and most accurate news.”
Australia’s major media outlets released a joint statement on Tuesday in support of the move.
“If digital platforms fail to pay for the use of the news content from which they profit, then journalism becomes unsustainable,” the statement said.
“It is also in the public interest that reliable, professionally created news and information remains accessible and visible on the digital platforms used by millions of Australians,” the statement read in part.”
While there have already been consultations with Meta (Facebook and Instagram), Google and TikTok, there is already resistance to the move from the media giants.
Meta issued its open statement on Tuesday to express its displeasure over the move.
“A government-mandated transfer of wealth from one industry to another, with no connection to the value exchanged, will not deliver a sustainable or innovative news sector,” its statement said.
“Instead, it will create a news industry dependent on a government-administered subsidy scheme.
“We are reviewing the details of the exposure draft and will provide feedback through the consultation process.”
The draft legislation is available on the Treasury website, with consultation open until 18 May 2026.
Original Article published by Chris Johnson on Region Canberra.
