The Australian Government will impose a new tax on social media companies that do not pay news outlets for their content.
The tax would apply to social media platforms' Australian revenue. Companies that agree to deals with Australian news publishers will be exempt.
“The Albanese government is committed to a diverse and sustainable news media sector, given this is critical to the health of Australia’s democracy," Communications Minister Michelle Rowland said today.
“Large digital platforms have an important role to play in providing access to news for all Australians, and contributing to the sustainability of public interest journalism.”
The Government has not yet announced the tax's amount, but it will apply to all social media platforms and search engines with Australian revenues above A$250 million. This is set to include Meta, ByteDance, and Google.
According to Rowland and Assistant Treasurer Stephen Jones, the tax is intended to drive platforms to negotiate, rather than raise revenue. Revenue from the tax will be distributed to news outlets.
The plan is set to be enacted next year, and its effects will be backdated to January 1, 2025.
While the existing News Media Bargaining Code would fine platforms 10% of their Australian revenue if they do not negotiate in good faith with media companies, these platforms can avoid being penalised by removing all news content in Australia.
No social media companies have been designated under the News Media Bargaining Code thus far.
Meta said in March that it would not renew its deals with Australian news publishers. The company signed these deals in 2021 after the government introduced laws that required social media platforms to pay for news on their platforms.
Australian news outlets had received up to A$200 million from deals with Meta, according to the Government.
A parliamentary committee recommended requiring social media platforms to pay a levy to fund Australian journalism in October.