News bargaining incentive takes shape as US threats fade
The news bargaining incentive will apply to all digital platforms irrespective of whether they carry news content.
The final design of the Albanese government’s news bargaining incentive – which was devised to encourage tech giants to contribute to the sustainability of journalism in Australia via commercial deals with news media outlets – is a step closer, with key stakeholders set to lodge their submissions on the draft legislation.
In a consultation paper to be released by Treasury on Thursday, the federal government has sought to provide certainty to both news businesses and tech companies about the overall design and scope of the scheme, and how its “liabilities” will be calculated.
The incentive was announced last December, with the Albanese government aiming to address the limitations of the existing news media bargaining code, which allowed digital platforms’ to avoid their financial obligations by removing, or threatening to remove, news content from their platforms. The news bargaining incentive will apply to all digital platforms irrespective of whether they carry news content.
“Treasury is mindful that digital markets are fast-moving and the interaction of news media with platforms will change over time as markets change,” the consultation paper reads. “The incentive will seek to balance flexibility in its scope and operation, while providing a level of certainty to platforms and news businesses.”
Labor’s determination to push ahead with the proposed incentive comes even as US President Donald Trump threatened reciprocal tariffs against countries that levy US companies, including the social media giants, with new regulation or taxes.
Posting in August to his own social media platform, Truth Social, Mr Trump pledged to “stand up to countries that attack our incredible American tech companies”, singling out digital taxes, digital services legislation and other regulations of digital markets. “Unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional tariffs on that country’s exports to the USA,” he wrote.
In response to the Trump administration’s initial tariff hit, Anthony Albanese has repeatedly emphasised that the news bargaining incentive was “not up for negotiation”, but a lack of visible progress had sparked concern among media executives that the proposal had been quietly shelved due to its diplomatic sensitivity.
Those concerns have since eased following meetings between Mr Albanese and Mr Trump, which have cleared the way for the government to advance the incentive. The central question posed in Treasury’s consultation paper is how a proposed “incentive liability” – which will be imposed on platforms that do not ink agreements with publishers – will be calculated.
Under Treasury’s preferred option, the liability would be calculated by multiplying a social media company’s total gross revenue generated in Australia, exclusive of GST, by a yet-to-be -determined “incentive rate”.
This total would then be reduced by so-called eligible expenditure – such as costs incurred under a commercial agreement, or indirect support such as funding grants or initiatives.
The release of the consultation report was welcomed by Australia’s senior news executives.
“The news bargaining incentive’s importance has only escalated since it was announced almost a year ago in terms of how we function successfully as a nation,” said Michael Miller, executive chairman of News Corp Australasia.
“This is the clearest indication yet that the government will continue its good work to stand up for local Australian communities by asserting news media’s enduring importance in shaping our national stories, identity and, ultimately, our democratic way of life.”
Nine Entertainment chief executive officer Matt Stanton said the reforms were about making sure the big tech and social media platforms pay for the journalism from which they profit.
“They have long derived value from our news content being accessible for Australians through their platforms. And our investment in that journalism has a price,” he said.
“We’re glad to see momentum really building now to finalising this reform soon. Journalism matters to Australians because our democracy matters to all of us.”
Google also issued a press release on Wednesday, outlining its ongoing commitment to supporting the Australian news industry.
“Since 2020, we have signed agreements with 88 Australian publishers, representing 226 media outlets across the country,” it read.
“In the last year alone, we’ve renewed agreements with 60 publishers and we remain the only technology company that has maintained commercial partnerships with the Australian news industry since 2020.”
The deadline for stakeholder submissions is December 19.
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