Australia is revamping its policy to require large tech platforms to contribute to journalism funding through an incentive-based scheme that could levy charges based on Australian revenue or apply penalties if they don’t strike deals with publishers.

Under the plan, liability would be tied to a share of Australian income, with a potential 2.25% revenue charge; entering commercial deals with publishers could reduce liability, at a rate that effectively zeroes penalties if sufficient deals are made.

Treasury projects penalties of about 2.25% of revenue if no deals are struck, while negotiated deals at around 1.5% of revenue would provide equivalent relief.

The scheme builds on the foundational News Media Bargaining Code, extending its framework and applying it to today’s digital platforms like Google and Meta.

Microsoft, Meta, and Google say they are reviewing the proposal and will participate in consultation; Apple and TikTok were invited for comment, with Google providing feedback.

The policy continues the 2021 News Media and Digital Platforms Mandatory Bargaining Code and the News MAP program to support journalism—especially regional and local—and to avoid raising government revenue.

Industry leaders welcomed renewed momentum, stressing journalism’s democratic importance and the need for clear rules governing big tech’s role in funding news.

Historically, about $200 million in past deals flowed primarily to major publishers, shaping how offsets and relief are viewed in the new scheme.

Companies can currently evade rules by removing news content, a tactic seen when Meta pulled news in Canada in 2023.

Treasury outlines three offsets: direct deals with publishers, arbitrated arrangements from the prior code, and indirect support for public-interest journalism.

This represents a major escalation in funding debates, following Meta’s decision not to renew roughly $70 million in deals under the previous code.

Distribution of payments between large and small publishers remains a question, with consultation closing mid-December and possible backdating to the start of the year under consideration.