The Albanese administration has issued a clear warning to global social media and technology conglomerates, unveiling a revised regulatory framework designed to compel large digital platforms to compensate Australian news organizations for the use of journalistic content. Set to be announced publicly on Monday, the adjustments to the government’s News Bargaining Incentive code modify the penalty structure that applies to platforms that refuse to enter into mandatory commercial agreements with local media outlets.
Under the revised rules, major tech firms including Google and Meta will only face a maximum penalty equal to 2.5% of their Australian-derived digital advertising revenue if they fail to strike required deals. While the new rate marks a 0.25 percentage point increase from the originally proposed charge, the scope of taxable revenue has been narrowed from all Australian operational revenue to only digital advertising earnings, resulting in a lower overall penalty burden than the government initially outlined. According to government officials, the adjusted structure is designed to drive the same volume of voluntary commercial deals between platforms and media outlets as the original draft.
In addition to the penalty changes, the updated code raises the minimum number of required deals with local media organizations from four to six for platforms to avoid penalties. Microsoft has also been added to the list of regulated entities, with its professional networking platform LinkedIn now brought into the scheme, in recognition of its growing role in distributing news content to Australian users.
Financial Services Minister Daniel Mulino emphasized that the tweaks to the April draft legislation do not shift the core purpose of the policy, which is to shore up the sustainability of Australia’s journalism sector and encourage mutually beneficial commercial agreements between digital platforms and news providers. “Australian journalism is important to a well-functioning democracy and we want it to be sustainable now and into the future,” Mulino said. “We want digital platforms to do deals with a diverse range of media organisations and have shown good faith with both the platforms and media companies during the consultation process.”
The reforms also include a series of adjustments to the News Journalism Payment Scheme ahead of the bill’s introduction to parliament. The definition of eligible journalists has been expanded to cover more essential news roles and freelance contributors, while a dedicated grant program funded by penalty revenues will be established to support small publishers and new media startups. Journalists and media outlets serving regional areas, small-to-medium audiences, and marginalized communities including Indigenous Australians and the LGBTQ+ community will receive a 20% uplift in distributed funds.
Communications Minister Anika Wells noted that the targeted uplift for small and regional outlets recognizes the unique challenges these organizations face, as well as their critical role in serving local communities. “Journalism is the lifeblood of a robust democracy, which is why the Albanese government is backing a strong and sustainable media sector,” Wells said.
The policy builds on a decade-long push by successive Australian governments to force large digital platforms to compensate local media, a fight that first resulted in the 2021 News Media Bargaining Code. From the start, the policy has faced fierce pushback from big tech: Meta, for example, chose to remove all news content from its Facebook platform in Australia from 2024 rather than comply with mandatory payment requirements.
While the revised framework has been adjusted to address some tech industry concerns, it is expected to draw criticism from Australian publishers, who argue that narrowing the scope of revenue subject to penalties will reduce the overall financial pressure on platforms to strike deals. The legislation includes provisions to honor existing agreements reached during earlier bargaining periods, and a full statutory review of the scheme will be conducted three years after it takes effect.
Major Australian news organizations including News Corp Australia, the ABC, Nine Entertainment and Australian Community Media have repeatedly backed the government’s approach. In a joint statement released during the consultation phase in April, the group argued that “if digital platforms fail to pay for the use of the news content from which they profit, then journalism becomes unsustainable.” Under the final framework, platforms that meet the requirement of striking six deals with local media will face zero penalty liability, eliminating any financial burden for compliant firms.