Big tech companies that fail to strike deals with Australian media to face higher levy
The Australian government is increasing the levy on tech companies that fail to reach content deals with local media from 2.25% to 2.5% of digital advertising revenue. While the penalty rate is higher, companies secured a concession to apply the levy only to digital ad revenue rather than total revenue.
Why it matters
This represents a significant shift in how governments regulate the relationship between global tech giants and local news ecosystems, balancing revenue extraction with corporate concessions.
Tech companies including Meta will pay a higher levy to Australian media companies if they fail to strike a deal for content, but have won a key concession. ( Reuters: Dado Ruvic )
The government has increased the levy for tech companies that fail to strike content deals with Australian news organisations from 2.25 to 2.5 per cent of ad revenue.
However, companies have won a key concession, with the levy only to be applied to digital advertising revenue, not their entire revenue.
The government is expected to bring the legislation before parliament in the coming weeks.
Link copied Share Share article Big tech companies that fail to strike commercial deals with Australian media organisations will face a 2.5 per cent levy on their digital advertising revenue under the federal government's proposed amendments to media bargaining laws, with legislation expected to be introduced to parliament within weeks.
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