Australia’s new tax plan targets big tech for media revenue

The Australian government plans to introduce a tax on tech companies like Google and Meta if they fail to compensate local news organisations for using their content. Starting January 1, firms earning over AUD 250 million ($160 million) in Australia will be required to either pay for content or face significant tax penalties. 

According to reports, Communications Minister Michelle Rowland explained that digital platforms have disrupted traditional media, threatening the future of quality journalism, which is vital for democracy. The new rules aim to protect media companies struggling with reduced advertising revenue and job losses among journalists.  

The proposed tax primarily targets platforms such as Google, Facebook, and TikTok. However, companies can avoid the tax by signing agreements with Australian media outlets. The policy’s goal is to encourage tech firms to negotiate fairly rather than generate tax revenue, according to Assistant Treasurer Stephen Jones.  

In 2021, a media bargaining law led Google and Meta to strike deals worth $160 million with Australian newsrooms. However, Meta has indicated it won’t renew these agreements in 2024, arguing that news content forms only a small part of its traffic.  

The debate over compensating news publishers isn’t limited to Australia. In Canada, Meta blocked news content entirely to avoid similar obligations, and Google limited access to news links in California.  

Australia’s move reflects broader efforts to hold big tech accountable. Alongside this tax plan, the country has introduced other regulations, such as restricting social media access for under-16s and considering penalties for failing to combat harmful content.