Australia Proposes Tax on Meta Google TikTok for Journalism

Australia has unveiled a draft legislation proposing a 2.25% tax on the revenue of digital giants Meta, Google, and TikTok. This initiative, set to be introduced to Parliament by July, aims to create a financial incentive for these companies to negotiate payments to news organizations. The government estimates the tax could generate approximately 200 to 250 million AUD ($144M-$179M) annually, enabling a distribution of funds to news organizations based on the number of employed journalists, similar to a previous framework established under the News Media Bargaining Code.

The proposed tax has drawn criticism from the platforms, with Meta labeling it a misguided digital services tax that misinterprets the advertising landscape. Google echoed this sentiment, suggesting that it undermines existing commercial agreements while excluding other significant platforms. This move represents Australia's second attempt to ensure that digital platforms contribute to the funding of journalism, raising critical concerns about the dependency of the news sector on government subsidies and the implications for media autonomy.