Australia’s new News Bargaining Incentive will impose a 2.5% levy on qualifying digital platforms’ Australian advertising revenue unless they strike commercial agreements with local publishers, with larger tax credits available for deals supporting smaller news outlets.
Australia passed legislation on 20 August 2026 that imposes financial penalties on tech companies that refuse to pay local publishers for news. The News Bargaining Incentive taxes digital platforms 2.5% of their Australian advertising revenue unless they secure commercial agreements with media outlets.
The measure applies to Meta, Alphabet’s Google, TikTok, and Microsoft’s LinkedIn—specifically those with significant social media or search operations in Australia and local advertising revenue exceeding AUD 250 million. The government expects this structure will redirect money to local news businesses whose content drives user engagement and advertising returns on these platforms.
How platforms can reduce or avoid the levy
Companies can offset their tax obligation by striking deals with at least eight different publishers before their financial reporting period ends. Agreements that support news production or make publisher content available on the platforms count toward this requirement.
The offset structure favours smaller outlets. Spending with large publishers generates a 150% credit against levy liability, while deals with small and medium-sized outlets receive a 200% credit. No single agreement can reduce a platform’s liability by more than 25%.
Government’s enforcement position
The Australian government stated that platforms must finalise commercial arrangements within their reporting periods to use those deals to reduce liability in that period, signalling that the legislation now stands as binding regulation.
