Australia’s Draft Levy Would Tax Google A 2.25% Revenue Fee to Fund A$200–250M
Australia's draft News Bargaining Incentive would levy 2.25% on Google’s Australian revenues unless it strikes deals with local publishers, dropping to 1.5% after sufficient agreements. The levy is expected to channel A$200–250 million into journalism and applies regardless of whether platforms carry news content.
1. Draft NBI Legislation
The draft News Bargaining Incentive proposes a 2.25% levy on Google’s Australian revenue if it fails to secure commercial agreements with local publishers.
2. Levy Structure and Financial Estimates
The levy rate can decline to 1.5% contingent on the number of publisher deals and is projected to redirect A$200–250 million into national journalism.
3. Historical Context and Loophole Closure
This measure addresses a loophole in the 2021 News Media Bargaining Code that allowed platforms to remove news content to avoid payments, a tactic used by Meta in 2024.
4. Scope Expansion and AI Exclusion
The draft legislation extends to platforms including TikTok but explicitly excludes AI services from its scope, while platforms are taxed regardless of carrying news content.