Australia Passes Law Forcing Big Tech to Pay 2.75 Percent of Revenue for News
Big Tech firms have the choice of signing direct deals with media outlets to 'offset' the size of the annual levy.
Australia’s federal government has passed a revamped News Bargaining Incentive, requiring nominated Big Tech firms to pay a 2.75 percent tax on their annual revenue. This tax is levied if these companies fail to reach payment agreements with Australian news outlets. Voluntary deals with news organizations provide an “offset” that reduces the annual levy, with larger offsets for deals with regional outlets.
- The federal government’s News Bargaining Incentive has passed both the House of Representatives and Senate.
- Big Tech firms must pay a 2.75 percent tax on annual revenue if they don’t strike payment deals with Australian news outlets.
- The affected companies include Google, Meta (Facebook, Instagram), TikTok, and LinkedIn.
- Successful voluntary deals with news outlets trigger an ‘offset’ on the annual levy, lowering the rate.
- A deal with a large outlet provides a 150 percent offset, while a deal with a regional outlet offers a 200 percent offset.
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