Australia to raise digital levy to 2.5% for tech platforms skipping news deals
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Australia will introduce legislation in the coming weeks to raise a levy on large digital platforms that do not reach commercial agreements with local news outlets, shifting the charge to 2.5% of their digital advertising revenue. The move aims to compel tech companies such as Google to fund journalism, Deputy Treasurer Daniel Mulino said. The higher rate applies to a narrower base than the existing levy, which is calculated on total revenue.
The Proposed Levy
The legislation would require digital platforms that fail to strike deals with at least four Australian news publishers to pay a levy of 2.5% on their digital advertising revenue. The plan was first reported by ABC News and confirmed by Deputy Treasurer Daniel Mulino. Unlike the current system, the levy will be calculated solely on advertising income rather than the companies' total Australian revenue.
Existing Framework
Currently, tech giants like Google can face a levy of 2.25% on total revenue if they avoid commercial agreements with local media. Companies can offset this by negotiating deals that provide a tax benefit of roughly 1.5% of revenue. The new bill replaces the old structure, swapping a higher percentage on a narrower income stream for a lower rate on a broader base.
Government Rationale
Mulino stressed that platforms that profit from news content should bear financial responsibility toward the outlets that produce it. The Australian government frames the measure as a step toward a more viable news ecosystem. The proposed levy underscores Canberra’s push to hold tech firms accountable for using journalism without compensation.
What's Next
Parliament is set to receive the bill within weeks, though the debate schedule is not yet fixed. It remains unclear whether tech companies will contest the levy or hasten licensing talks with publishers to escape the charge.
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Australia to raise digital levy to 2.5% for tech platforms skipping news deals
