- News
- Technology News
- Tech News
- Australia passes law to tax Google, Meta and Microsoft if they do not pay for local news
Trending
Sundar Pichai
Google Pixel 11
Gemini Student Offer
Samsung Galaxy Event
Australia passes law to tax Google, Meta and Microsoft if they do not pay for local news
Australia has formally enacted new legislation that requires major technology corporations to pay substantial levies if they do not negotiate commercial compensation agreements with domestic news publishers for distributing their journalism. According to a report by news agency Reuters, the law is titled News Bargaining Incentive, and imposes a 2.5% tax on local advertising earnings unless qualifying platforms enter into direct content partnerships with Australian media organisations.
Funding local media and journalism in Australia
Funds generated from the tax will be channeled directly to domestic Australian newsrooms, the report said, adding that lawmakers highlighted that local journalistic reporting plays a major role in keeping users engaged and generating digital ad income across large tech platforms.The regulation specifically covers digital platforms operating major search or social networks in Australia that generate more than A$250 million (roughly $178 million) in domestic advertising revenue. Key companies subject to the framework include Google-parent Alphabet, Facebook-parent company Meta, Microsoft-owned LinkedIn and TikTok.
Rules for tax offsets and content agreements
Big Tech platforms can bypass the 2.5% tax by entering into commercial agreements with a minimum of eight distinct news publishers before their financial reporting cycle concludes. The financial value of these partnerships will reduce their total tax obligation. Under the guidelines, commercial agreements must directly fund the creation of news reporting or address how a publisher’s digital reporting is hosted and shared on the platform.The legislation also says that financial investments made with major media organisations provide a 150% tax deduction credit, while agreements signed with small and mid-sized publishers grant a 200% offset credit. No individual publisher agreement can account for more than 25% of a platform’s total levy obligation.“The legislation is here, and the message to platforms to pursue commercial deals is clear. Deals will need to be finalised before the end of a digital platform’s financial reporting period to be used to offset their liability in that period. This is an important day for Australian news businesses and Australian journalism,” the government said.The approval of the News Bargaining Incentive follows closely behind another major legislative measure passed a day earlier, which placed broad curbs on gambling advertising.
Latest Mobiles
Photostories
