Australia to impose taxes on tech giants for failing to compensate news outlets
Firms like Meta face tax if they don’t pay for news driving traffic to their sites, depriving media firms of revenue
The Australian government has unveiled plans to tax major tech companies if they fail to share revenue with local news media outlets.
Starting January 1, firms such as Meta and Google with Australian-based revenues exceeding 250 million Australian dollars ($160 million) will be required to pay for news content or face substantial tax penalties that could run into millions.
Communications Minister Michelle Rowland emphasized the need for the measure, stating that the rapid expansion of digital platforms has “disrupted” the media industry and is “threatening the viability of public interest journalism.” She stressed that digital platforms must support access to quality journalism, which is essential for a strong democracy.
The initiative aims to bolster traditional media organizations struggling to survive as their content is freely used on digital platforms, eroding vital advertising revenue. The ongoing challenges have already led to the loss of hundreds of Australian journalism jobs.
The government specified that the tax would target parent companies of platforms like Google, Facebook, and TikTok, but it would be waived for firms that voluntarily reach commercial agreements with Australian media outlets.
