Australia Proposes 2.25% Levy to Raise AUD200–250 Million from Digital Platforms
Australia proposes a 2.25% revenue levy on Meta, Google, and TikTok's Australian income unless they secure commercial deals with local news outlets. The measure, dubbed News Bargaining Incentive, aims to generate AUD200–250 million yearly to support struggling media and compensate journalists.
1. Proposed Levy Details
The Australian government’s News Bargaining Incentive would impose a 2.25% levy on the Australian revenue of major digital platforms, including Google. Platforms can avoid the levy by negotiating commercial agreements with local news organizations to pay for journalistic content.
2. Potential Impact on Google
The levy is projected to raise AUD200–250 million annually, representing a modest but material hit to Google’s regional earnings. Google has criticized the plan as a disguised digital services tax and may push for exemptions or negotiate deal structures to minimize the financial impact.