Australia Unveils Digital Tax to Fund News, Targeting Meta, Google, TikTok
Australia proposes a 2.25% tax on revenue from Meta, Google, and TikTok to support journalism.
Why it matters: Legal, compliance, and business teams at affected digital platforms and news publishers must prepare for a novel tax regime likely to shape negotiation strategies and payment flows. The move signals a shift in how countries may enforce funding for local journalism.
- Draft law would impose a 2.25% tax on Australia-generated revenue from Meta, Google, and TikTok.
- Expected to generate 200–250 million AUD annually for news outlets, tied to newsroom size.
- Legislation due for Parliament submission by July 2, 2026.
- Meta and Google have criticized the plan, calling it a digital services tax.
The Australian government on April 28, 2026, announced draft legislation that would require major digital platforms—Meta, Google, and TikTok—to pay a 2.25% tax on their Australian revenue to support journalism.
- The tax aims to raise between 200 and 250 million Australian dollars annually.
- Funds will be distributed among news organizations, with allocation based on the number of employed journalists.
- The legislation is slated for introduction to Parliament by July 2, 2026.
Prime Minister Anthony Albanese said, “It shouldn't just be able to be taken by a large multinational corporation and used to generate profits for that organisation with no compensation appropriate for the people who produce that creative content.” He added, “We think that investment in journalism is critical to a healthy democracy.”
The move builds on Australia’s 2021 News Media Bargaining Code, designed to ensure tech platforms pay for journalistic content. However, after the initial wave of agreements, companies reduced news visibility on their platforms, leading to lapses in deals and prompting the proposed tax as a more direct funding mechanism.
Meta and Google have pushed back, labeling the law a 'digital services tax' that misunderstands digital ad markets and risks failing to create lasting support for newsrooms. TikTok's response has not been made public.
Legal and compliance teams on both sides—technology and publishing—face implications for tax planning, revenue recognition, and contract negotiations if the law passes.
By the numbers:
- 2.25% — tax rate on Australian revenue for Meta, Google, and TikTok
- 200–250 million AUD — expected annual funds raised for news outlets
- 2021 — year Australia enacted its News Media Bargaining Code
Yes, but: Distribution details for tax funds and TikTok's response remain unclear.
What's next: The draft law is expected to be introduced to Australia's Parliament by July 2, 2026.