Source : Perth Now news
The Albanese government has significantly reduced the penalties it will hit digital platform giants with if they do not sign deals with Australian media companies under its News Bargaining Incentive code.
Under the change to be unveiled on Monday, tech giants – such as Meta and Google – would face a penalty of 2.5 per cent of only their digital advertising revenue attributable to Australia if they do not strike deals with local media companies.
The government had previously threatened a 2.25 per cent charge rate on all revenue attributable to the tech companies’ Australian operations – meaning the penalties will now be lower.
But the government says the increase of the charge rate by 0.25 per cent will encourage deals with media outlets of about the same size as has previously been struck.
Under the government’s changes, platforms will also have to strike at least six deals with local media organisations, rather than four, to avoid being hit with the penalty.
Microsoft will also now be forced to cut a deal, with LinkedIn to be included amid the increasing promotion of news articles on its website.
Financial Services Minister Daniel Mulino said changes to the incentive from the April draft did “not alter the intent of the legislation and remain true to the policy rationale” to support journalism and encourage commercial deals.
“Australian journalism is important to a well-functioning democracy and we want it to be sustainable now and into the future,” Mr Mulino said.
“While we are making some changes to the News Bargaining Incentive, they do not alter the intent of the legislation and remain true to the policy rationale.
“We want digital platforms to do deals with a diverse range of media organisations and have shown good faith with both the platforms and media companies during the consultation process.”
It is anticipated publishers will not be happy with the changes, because of the reduction in in-scope attributable revenue.
Appropriate deals made during the previous bargaining period will be recognised and a review will be undertaken after three years.
The News Journalism Payment Scheme will also be altered before the Bill goes before parliament.
The changes include a broadened definition of journalists to include more “essential news roles” and freelancers, a grant program for small publishers and start-ups using funds raised from the incentive.
Regional-based journalists and small to medium publishers, as well as those servicing vulnerable communities, such as the LGBTQ+ community and Aboriginal people, will be given a 20 per cent uplift.
Communications Minister Anika Wells said changes to the distribution scheme loading for smaller and regional publishers acknowledged “both the challenges smaller outlets face, but also the incredible contribution they make to the communities they serve”.
“Journalism is the lifeblood of a robust democracy, which is why the Albanese government is backing a strong and sustainable media sector,” she said.
Successive Australian governments have faced pushback from social media and large digital companies such as Facebook parent company Meta since the News Media Bargaining Code was first introduced in 2021.
Meta effectively sidestepped the code when they removed and de-prioritised news since 2024, rather than being forced to pay for content.
Labor’s reforms sought to not only target platforms that host news, though the change has faced pushback and questions from tech companies about who and who is not captured by the changes.
However, those companies captured by the measures could theoretically reduce their tax bill to zero if six deals are struck with the sector – up from four in the draft.
News organisations including News Corp Australia have previously been supportive of the measures.
In a joint statement in April, media organisations also including the ABC, Nine Entertainment and Australian Community Media said “if digital platforms fail to pay for the use of the news content from which they profit, then journalism becomes unsustainable”.
