Australia Plans 2.25% Levy on Google Revenues Without News Deals
The Australian government will impose a 2.25% levy on Google’s local revenues from the 2025-26 financial year if it fails to secure payment deals with news outlets. Funds collected will be allocated to publishers based on journalist headcount, with larger offsets awarded to smaller organisations.
1. Levy Proposal Details
The draft News Bargaining Incentive would tax Google 2.25% on its Australian revenues starting July 1, 2025, unless it negotiates payment agreements with local news publishers. Failure to secure deals would trigger direct charges, channeling proceeds to a government-administered fund.
2. Funding Distribution Mechanism
Collected levies will be disbursed based on the number of journalists employed by participating news organisations. The scheme provides greater offsets for deals struck with smaller outlets, aiming to support regional and independent journalism.
3. Potential Impact on Google
With Australian digital ad revenue estimated in the low billions, the levy could represent multimillion-dollar payments annually. Google may face increased negotiation pressure to strike content-licensing deals and avoid direct taxation charges.