Australia is moving to expand the number of commercial agreements that large digital platforms must make with domestic news publishers under a revised News Bargaining Incentive. Reuters reported on August 12 that the legislation was due to be introduced to Parliament on Thursday. The measure would require covered platforms to strike deals with at least eight media companies, compared with six in an earlier draft, if they want to offset the charge created by the scheme.
How the proposed incentive works
The Australian government’s official release says the News Bargaining Incentive is designed to encourage digital platforms to make commercial agreements with media organisations for the use of their content. A platform that chooses not to make deals would instead pay a charge. Revenue raised through that charge would be distributed to the Australian news media sector, according to the government.
Reuters reported that the revised charge would equal 2.5% of a company’s Australian advertising revenue. The value of qualifying deals would be used to offset what a platform owes. The government also restored a cap under which any single agreement can account for no more than 25% of a platform’s levy liability. That structure is intended to prevent one large agreement from absorbing most of a platform’s credit under the scheme.
More outlets and a role for AAP
The latest revision raises the minimum number of media companies involved to eight. Reuters said the change followed discussions between the government and opposition and was intended to spread support across more domestic outlets. The same report said 5% of money collected under the scheme would be directed to Australian Associated Press, the non-profit national newswire, in recognition of its role in public-interest journalism.
The government’s earlier official release described other changes made after consultation. These included narrowing the charge base while increasing the rate, removing an exclusion for professional networking sites, and increasing the distribution loading for regional journalists, small and medium publishers, and outlets serving underrepresented communities from 10% to 20%. The plan also includes a grants programme for small publishers and start-ups with annual revenue below A$150,000.
Which platforms could be covered
Reuters said the redesigned plan includes services such as TikTok and Microsoft’s LinkedIn, broadening the focus beyond the companies associated with Australia’s original media bargaining framework. The government’s official release separately confirms that the professional-networking-site exclusion was removed. The legislation is therefore framed around categories of digital platforms rather than only the two companies most closely associated with the 2021 system.
Australia’s earlier framework led Google and Meta to negotiate commercial deals with publishers. Reuters reported that the government began redesigning the regime after Meta said it would stop paying for news content in Australia and other markets. The current proposal is meant to create a financial incentive for agreements while providing a charge when covered platforms do not make them.
What happens next
The official August 3 release said the finalised legislation was expected to be introduced early in Parliament’s spring session. Reuters’ August 12 report narrowed that timetable to Thursday. Introduction does not itself mean the bill has become law; it must still proceed through the parliamentary process. The final obligations and commencement arrangements therefore depend on the enacted text.
The confirmed development is that the government has revised the proposal, increased the deal threshold to eight, restored the single-deal cap and assigned a share of collected funds to AAP. Claims about the scheme’s eventual revenue or its effect on individual publishers remain projections until implementation. The legislation’s progress and any further amendments will determine how the incentive operates in practice.
