2.25% news – Australia’s draft law would make Meta, Google and TikTok pay for local news links or face a 2.25% revenue levy—cutting to 1.5% with deals.
Australia is moving to force Big Tech to pay for the journalism it distributes, setting out a draft framework that could reshape how Australians access news on major platforms.
The proposed News Bargaining Incentive (NBI) would require companies including Meta. Google and TikTok to strike commercial agreements with local publishers—or pay a levy of 2.25% on relevant Australian revenues.. Misryoum notes the move is timed as governments worldwide increasingly question whether dominant online platforms should shoulder the cost of producing the news their users consume.
The government’s logic is straightforward: people can find news directly through social media feeds and search results. but the reporting itself is created by cash-strapped media organisations.. Communications minister Anika Wells said Australians are increasingly turning to Facebook. TikTok and Google for news. meaning the platforms capture engagement and value while journalism bears the expense of gathering and publishing information.
Under the NBI, the levy is not a fixed penalty for every company.. Instead, the rate declines as more deals are struck with news outlets—potentially bringing the effective rate down to 1.5%.. The government estimates that if the framework works as intended. it could generate between A$200 million and A$250 million flowing back into Australian journalism.
Misryoum analysis: this is not just a funding mechanism; it’s a bargaining design.. By tying payments to revenue and discounting them based on agreements. the policy aims to reduce the ability of platforms to take a “business as usual” approach where news distribution happens without meaningful compensation.
That matters because Australia already tried a similar approach.. The News Media Bargaining Code began in 2021 and required platforms such as Google and Meta to pay publishers.. But that earlier framework contained a weakness: Big Tech could remove news from platforms to avoid triggering payments.. Misryoum understands the practical outcome was sharp—Meta removed news content in 2024. and that change was widely associated with job losses across Australian newsrooms.
The NBI is designed to close that gap.. Instead of assuming companies will keep carrying news to protect revenue, the levy applies unless commercial deals are reached.. In other words, the system is intended to prevent platforms from sidestepping payments simply by altering product features.. At the same time. TikTok’s inclusion signals an expansion of the policy from traditional search and social surfaces into short-form and recommendation-led discovery.
Human impact sits at the center of the debate.. Newsroom budgets are already under pressure from changing advertising patterns, rising costs, and competition for attention.. If the levy translates into stable funding. publishers could have more runway for reporting that serves local communities—especially outside major metro areas where advertising is thinner and newsrooms are smaller.
Still, the design carries trade-offs.. Platforms will likely argue about how “news aggregation” is defined. how revenue is calculated. and whether the compliance burden could discourage innovation or tighten platform controls in Australia.. For publishers. the key question will be whether negotiated payments flow consistently to a wide range of outlets rather than concentrating benefits among bigger players with stronger bargaining power.
The scope also includes a notable carve-out: AI services are excluded from the NBI’s coverage.. Misryoum highlights that this suggests policymakers want to handle AI-related copyright and licensing questions through separate tracks. rather than folding everything into one deal.. That decision may reduce short-term legal complexity. but it leaves open the broader issue of how AI-driven news discovery and summarisation will be treated as technology evolves.
Globally, Australia is not alone.. Misryoum observes that Canada. Brazil and the EU have all taken steps to make platforms pay for news. with results varying from forced withdrawal of news to slow-moving legislation and uneven enforcement.. South Africa is often cited as a clearer reference point. where regulators brokered direct deals with major platforms. securing funding for local outlets over a multi-year period.
In the United States, the policy context is different.. Digital services taxes and similar levies have faced resistance, and the issue can quickly escalate into trade and tariff threats.. Australia’s plan also lands in a politically sensitive environment, with statements emphasizing national decision-making aligned with local interests.
If the legislation passes. platforms will have until July to comply. with the levy expected to take effect at that point.. For Australia’s media sector. the timeline is crucial: newsroom planning typically depends on predictable revenue cycles. and any new funding framework will need time to convert policy intent into real. measurable support for reporting.
For the broader market, the NBI could become a template—or a warning—depending on outcomes.. If platforms decide deals are cheaper than levies, the policy may strengthen local journalism without prompting mass removal.. If not, the dispute could intensify and force further redesigns.. Either way. Misryoum expects the next chapter of Australia’s media economy will be negotiated not only between newsrooms and governments. but between platforms and the rules they operate under.