Australia increases levy on Big Tech over local news deals
What's the story
Australia has increased the rate of a planned levy on tech giants, including Meta, Google, and TikTok. The move comes as part of a government plan to ensure these companies strike commercial deals with local media outlets for news content on their platforms. The new levy rate is 2.5%, up from the previous 2.25%. The tax will be levied only on advertising revenue instead of total business revenue of the companies involved.
Targeted companies
Who will be affected by the new levy?
The levy will be applicable to companies that provide a "significant" social media or search service in Australia, with local revenue exceeding A$250 million ($175.7 million).
This includes tech giants like Meta, Google, and TikTok.
The Australian government has also removed an exemption for professional networking sites, bringing LinkedIn under the new levy regime.
Fund allocation
Revenue to support local journalism
The revenue generated from this increased levy will be directed toward the news media sector. The Australian government hopes this move will help bolster local journalism.
Assistant Treasurer Daniel Mulino clarified on ABC Radio National that "the charge-base for the News Bargaining Incentive will be advertising revenue."
He added that the rate has been increased to ensure that "the overall amount of money raised by the deals entered into by these platforms with the media is about the same."
Legislative action
New laws expected soon
The new levy laws are expected to be introduced when the Australian parliament resumes later this month.
The move is part of Australia's broader strategy to ensure tech giants contribute fairly toward local media and journalism.