Australia is moving to require streaming services with more than one million subscribers to invest in Australian content, either by dedicating 10% of total programming expenditure or 7.5% of Australian revenue to commissioning and producing Australian content, effective from the start of next year.

The proposed law targets SVOD platforms and could trigger penalties up to about 10 times the relevant expenditure or revenue if targets are missed over a three-year period, potentially approaching nearly a billion dollars for some services.

Streaming platforms can choose between two calculation methods for meeting the obligation: spend 10% of total programming expenditure on Australian content, or allocate 7.5% of Australian revenues from subscriptions, ads and other sources, with three-year commitments.

The bill is set to be tabled in Parliament, with indications from parties that it will pass and approval from Screen Producers Australia, though the levy is below the industry’s preferred 20% target.

Industry reaction has framed the legislation as a landmark and a starting point for a regulatory framework that adapts to streaming-era dynamics, including greater career certainty for Australian creators.

Historial context shows a long push toward quotas since 2017, moving from voluntary proposals to a formal statutory regime after Labour’s 2022 election.

Industry concerns focus on potential cost increases for production and incentives, though government projections expect a gradual rise in Australian content spend rather than a sudden spike.

Negotiations over the levy and target levels spanned years, with Greens and producers seeking higher levels, while the government aims to have the law in place by the start of the new year.

Statements from Screen Producers Australia and the Australian Writers’ Guild emphasize brighter career certainty for creators and a fairer playing field for Australian content.

The government allowed for future amendments to the levy while keeping a 4:3 expenditure-to-revenue ratio; streamers will select one calculation method for three years.

Affected services include Netflix, Stan, Amazon Prime, Disney+, and Paramount+, with Apple TV+ and HBO expected to cross the threshold soon.

The 10%/7.5% obligation is lower than the originally sought 20% due in part to concerns about conflicts with the Australia-US Free Trade Agreement.