Australia to Charge Big Tech 2.25% Levy Unless They Pay for News
Synopsis
Australia has signaled a major shift in its battle with Big Tech, announcing a 2.25% revenue levy on April 28, 2026. The new News Bargaining Incentive will force companies like Google, Meta, and TikTok to either sign content deals with local media or pay a multi-million dollar fee to fund Australian journalism. Prime Minister Anthony Albanese defended the move as a matter of national interest, despite threats of trade tariffs from U.S. President Donald Trump. As the 2021 news laws fail to keep platforms at the table, this new pay-or-be-taxed model aims to safeguard the future of local reporting starting July 1, 2026.
The Australian government unveiled a new bid on Tuesday, to make global tech giants pay local media for news content. As part of the proposed “News Bargaining Incentive,” Meta, Google and TikTok would be required to negotiate direct deals with news businesses otherwise pay a 2.25% tax (levy) on their Australian revenue.
Key Highlights
- 2.25% charge on domestic revenue of companies (with income above $250 million)
- Companies targeted at the moment are Meta (Facebook/Instagram), Google, TikTok.
- Direct funding for journalism: All money collected from the levy will go straight to news organizations, allocated according to how many journalists they employ.
- New 2026 laws are written to eliminate the 2021 rules the government claims have failed.
- President Trump threatens tariffs against countries that impose special taxes on U.S. Tech companies
New News Bargaining rules
The Australian government said on Tuesday that Meta, Google and TikTok will be hit with a 2.25% tax on their Australian revenues unless they negotiate and conclude agreements under which they pay Australian news publishers for using their content. That’s all set to go into effect from July 1 in what the government calls News Bargaining Incentive, designed as a way of compelling the platforms to negotiate with local media instead of just ignoring them.
Communications Minister Anika Wells gave a straightforward sentiment on why: “More people are getting their news direct from Facebook, from TikTok and from Google,” Wells said in a statement, “and we think it’s only right at this point that major digital platforms should make a contribution toward the cost of journalism work that is used to populate their feeds and drive their profits.”
Both Levy Works, and Why it Replaces the Old Rules
According to the draft legislation, a fee would be collected and given to news organisations proportional to their number of journalists by any platform that cannot reach an agreement with a news publisher. Deals are done with platforms, those will get offsets because bigger offsets for deals made with smaller regional news organisations are also available.
The fresh tax would take the place of Australia’s 2021 News Media Bargaining Code that required tech platforms to negotiate with publishers or be compelled into arbitration. The government has argued that those rules are no longer working effectively, Meta and Google made deals under the old code but those agreements expired in 2024 and so far have not been renewed.
Albanese Responds to Trump, Australia Will Do as It Pleases
The announcement sets Australia up for a clash with Washington. US President Donald Trump has threatened tariffs on any country that applies digital services taxes to American tech companies, and a 2.25 per cent charge on the Australian revenues of Google and Facebook just happens to be one such country. Albanese did not flinch. “We’re a sovereign nation. We are going to, and my government will make decisions in the context of the Australian national interest,” he stated at the same press conference as Wells. It is the strongest sign yet that the Australian government is willing to stand its ground on this matter, even at risk with the Trump administration
FAQs
- What is the new 2% levy?
In truth, it is a tax of 2.25% on the revenue earned by big technology firms in Australia. They only need to pay this should they opt out of deals with news providers.
- Which companies have to pay?
Currently, the government is going after Meta (Facebook/Instagram), Google and TikTok. In order to qualify, they must make a minimum of $250 million in Australia each year.
- When does it start?
The legislature intends for the law to take effect by July 1, 2026.
- Will Facebook block news again?
Meta hasn’t said yet, but they’ve also threatened to remove news links in the past to avoid paying these kinds of fees.
Follow Inspirepreneur Magazine for daily global business news.
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
You Might Also Like
Xavier Orr: The Mind Behind Advanced Navigation
How Affirmation Aficionados Ignited a Seven-Figure Business and Prioritised Self-Care
