The News Bargaining Incentive legislation has pass federal parliament, forcing tech giants to pay a levy of 2.5% of local advertising revenue, should they fail to enter into commercial deals with Australian publishers.
Under the scheme, commercial deals with publishers offset the levy, giving platforms a financial incentive to negotiate rather than pay.
For every dollar spent on deals with small and medium publishers, platforms receive an offset against their liability.
For local and regional publishers, the final model increased the distribution loading for regional-based journalists, small-to-medium publishers and media serving underrepresented communities to 20% up from 10%.
The legislation also provides a grants program for publishers and start-ups with an annual revenue below $150,000, and broadens the definition of journalists to include additional essential newsroom and freelancer roles.
How affected global tech companies respond remains to be seen.
In it’s initial draft phase the legislation drew criticism from tech giants and international governments , with the White House labelling it “foreign extortion,” and the American Computer and Communications Industry Association (CCIA), a trade group representing major US firms including Meta, Google, Apple, Amazon, Uber and Pinterest, calling it “discriminatory.”
Australian publishers and industry bodies have welcomed the result.
Damian Morgan, president at Country Press Australia, an industry body representing around 240 local and regional news mastheads across Australia, called the passing of this legislation “a landmark moment for Australian journalism.”
“An opportunity to build a new era of constructive commercial partnerships between Australia’s news publishers and the global technology companies that benefit from their journalism,” said Morgan.
Morgan said the legislation was particularly significant for the hundreds of local and regional communities served by CPA members, where professional journalism provides an essential source of trusted information.
“The legislation has now passed. The framework is in place. We are ready to get on with the job,” Morgan said.
“We have the experience, we have the relationships and we are ready to engage. Our door is open and we are ready to start those conversations.”
Morgan said the success of the News Bargaining Incentive would be measured by the commercial agreements and investment in journalism that followed.
“The best possible outcome from this legislation is not the collection of a charge,” Morgan said.
“It is Google, Meta and other eligible technology companies entering meaningful commercial agreements with Australian news publishers and that investment flowing directly into stronger journalism.
Free TV Australia, the industry body representing all of Australia’s commercial free-to-air television licensees, has also welcomed legislation introduction, calling it a “critical step.”
“Free TV broadcasters invested $408 million in trusted news during FY24, including $35.2 million in regional Australia,” said Free TV in a statement.
“The NBI closes a loophole in the News Media Bargaining Code that allowed digital platforms to withdraw news services and avoid their obligations, while encouraging platforms to strike genuine commercial deals with news businesses.”
Bridget Fair, CEO at Free Tv, said the NBI will deliver tangible support for Australian news services.
“This is a significant milestone. The NBI puts a clear, workable mechanism in place to ensure that global tech platforms pay for the Australian journalism that they profit from,” said Fair.
“It will deliver real support for the trusted news services Australians rely on every day.
“Free TV has long advocated for a mechanism to allow Australian media companies to negotiate fair value for their content.
“We thank Minister Wells and Assistant Treasurer Mulino for delivering this outcome and look forward to working with the Government on its implementation.”
News Corp Australia has also praised the government's implementation.
“Australian news organisations now get the much-needed investment to continue delivering professional journalism vital to our democracy and local communities,” said Michael Miller, executive chairman at NewsCorp Australasia.
“This again shows the Australian Government’s willingness to be a world leader in developing policies that benefit everyday Australians and the public interest."
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