Tech Giants Meta, Google, TikTok to Fund Newsrooms? Australia Moves to Make It Reality

In a bold and closely watched move, the Australian government has proposed a new law that would require tech giants like Meta Platforms , Google , and TikTok to financially support journalism , or face a tax on their earning s. The draft legislation, expected to be introduced in Parliament by July, reflects a growing global concern over how digital platforms benefit from news without directly paying those who produce it.

At the centre of the proposal is a 2.25% levy on Australian revenue , but with a strategic twist. The tax will apply only if companies refuse to strike commercial agreements with news organisations. In essence, it is designed as a pressure mechanism , encouraging tech firms to negotiate fair payments with publishers rather than face a mandatory financial penalty.

Prime Minister Anthony Albanese has made it clear that this is about recognising the value of journalism in a democratic society. He argued that allowing multinational corporations to profit from news content without compensation undermines the very foundation of credible reporting. The government believes that sustained investment in journalism is essential for a healthy democracy .

The proposed system also lays out how the collected funds would be used. If platforms choose to pay the tax instead of signing deals, the government expects to generate between AUD 200 to 250 million annually . This amount would then be redistributed among news organisations based on the number of journalists they employ, ensuring that the money directly supports reporting and newsroom jobs .

This move builds on Australia’s earlier 2021 News Media Bargaining Code , which had initially pushed platforms into signing deals with publishers. However, as those agreements weakened and some companies stepped away from hosting news altogether, the government has now opted for a stronger, more enforceable model, one that gives companies a clear choice: pay publishers directly or contribute through taxation .

While companies argue that such measures misunderstand the digital advertising ecosystem, Australia remains firm in its stance. The message is simple, in the digital age, news cannot remain free for those who profit from it .