The Australian government has increased the planned levy rate for its News Bargaining Incentive from 2.25% to 2.5%. Under the revised plan, the proposed levy on technology companies will be calculated solely from their digital advertising revenue in Australia, rather than their entire business revenue.
Australian Assistant Treasurer Daniel Mulino stated that the charge rate was increased to 2.5% to ensure the overall money raised remains about the same while connecting it more closely to the platforms' advertising business.
The levy applies to companies with a significant social media or search service in Australia and local revenue exceeding A$250 million ($175.7 million). The exclusion for professional networking sites was removed from the draft, bringing Microsoft's LinkedIn within the scope of the Australian regulation.
Under the new Australian regulations, tech platforms must make commercial agreements with at least six separate media company groups to avoid or reduce their liability. This is an increase from the four agreements required in the previous draft. All funds raised from the levy will be directed to the Australian news media sector to support local journalism instead of going into the general budget.
Australia first introduced the News Media Bargaining Code in 2021 to encourage tech companies like Google and Meta to strike deals with local publishers. Meta previously criticized the planned levy, calling it a discriminatory and unfair tax.
Google stated that the regulation does not sufficiently take into account its existing commercial agreements with numerous Australian media outlets. The new laws are expected to be introduced when the Australian Parliament resumes sitting in August.
