The federal government has finalised the legislation for its News Bargaining Incentive, the charge that falls on large digital platforms which do not strike commercial deals with Australian news publishers. Communications Minister Anika Wells and Assistant Treasurer Daniel Mulino released the final design on Monday. The bill goes to parliament in the spring sitting.
The charge is set at up to 2.5 per cent of the digital advertising revenue a platform earns in Australia. The April draft had it at 2.25 per cent of total Australian revenue. The rate went up and the base narrowed at the same time.
“The tax base for the News Bargaining Incentive will be advertising revenue," Mulino said. The rate rose, he said, "to ensure the total amount raised through agreements between these platforms and media is broadly the same.”
It applies to companies running significant search or social media services here with Australian revenue above $250 million. Google, Meta and TikTok were in scope from the start. Professional networking services have now been added, which brings in Microsoft-owned LinkedIn.
Platforms that reach agreements pay less, and deals struck with small and medium publishers are offset at a higher rate than deals with the majors. That is the mechanism the whole scheme runs on. A platform can pay the news sector directly on commercial terms, or it can pay the Commonwealth.
Money collected does not stay with the Commonwealth. It goes back to the news sector through a distribution mechanism Treasury has not yet released. The loading applied for regional journalists, small and medium publishers, and outlets serving underrepresented communities has been doubled from 10 to 20 per cent. A grants program will open to publishers and start-ups turning over less than $150,000 a year. The definition of a journalist has been widened to take in freelancers and other roles involved in producing core news content.
Wells said the doubled loading for smaller and regional publishers was the change that mattered most. "We want new journalists. We want innovators in this space," she said.
Meta said the scheme "will leave Australian journalism dependent on a government-administered subsidy regime while doing little to help smaller publishers."
Mulino said the design is consistent with Australia's trade obligations. "We're confident that the arrangements we're putting forward are consistent with all obligations," he said.
What the scheme collects is now settled. Who receives it is not. The rate, the base, the revenue threshold and the loadings are all fixed in the bill, while the formula deciding which publishers draw what sits with Treasury and has not been published. The consultation paper flagged the distribution design as unresolved in April. It is still unresolved now that the charge is final.
The scheme is to be reviewed after three years. Until the distribution mechanism is released, the amount a given masthead stands to collect from the levy cannot be worked out from the legislation.
