Australia has unveiled draft legislation that would impose a tax on major tech platforms such as Meta, Google, and TikTok unless they reach voluntary agreements to compensate local news publishers. The proposal aims to address the financial challenges faced by traditional media outlets as audiences increasingly consume news through social media platforms. Under the draft law, companies that fail to strike deals could face a levy of 2.25 percent of their Australian revenue.

The move builds on Australia’s earlier media bargaining framework and seeks to close loopholes that previously allowed platforms to avoid payments by removing news content altogether. The government argues that journalism holds economic value and that tech companies benefiting from news distribution should contribute to its sustainability.

However, the proposal has faced pushback from tech companies, with Meta describing it as a “digital services tax” and Google questioning its scope and fairness. The development highlights ongoing global tensions between governments, media organisations, and technology platforms over revenue sharing, platform responsibility, and the future of journalism in the digital age.