Credit: Obi via Unsplash
The federal government has increased the rate of its News Bargaining Incentive levy while narrowing the revenue base it applies to, a combination critics believe diminishes the motivation for tech platforms to strike deals with Australian media.
Announced today, the News Bargaining Incentive levy will be increased to 2.5% from the drafted 2.25% of revenue.
The revenue applicable for the levy will now only apply to digital advertising revenue attributable to Australia, replacing the broader revenue base in the draft.
Companies can still offset the charge by signing tax-deductible deals worth 1.5% of revenue, though they will now be required to strike deals with at least six outlets to qualify for the exemption, up from four.
The offset for agreements with small news organisations has also been increased to 200% from 170%, intended to encourage platforms to strike deals with a broader range of media businesses.
LinkedIn and similar professional networking platforms will no longer be exempt from the legislation.
Michael Miller, executive chairman of News Corp Australasia, said the changes undermined the legislation's original intent.
“These changes gut the incentive for tech platforms to strike fair deals with Australian media, right when those rules need strengthening, not softening,” said Miller.
“On an already uneven playing field, getting this wrong won't just hurt Australian media. It will erode the quality and independence of news every Australian relies on.
“Tech giants cannot keep dodging their obligations. Australia deserves full revenue transparency, backed by severe, non-negotiable penalties for any platform that flouts local law.”
Alongside the incentive changes, the government has finalised details of the News Journalism Payment Scheme, which will be funded by the levy.
The definition of journalists will be broadened to include more news roles and freelancers, with intentions to generate larger revenue flows for regional publishers and those servicing particular communities.
A grants program will also be created specifically for publishers and startups with revenues under $150,000 a year.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.