Meta, Google, TikTok may pay 2.25% tax in Australia: What you should know
Australia may impose a 2.25% levy on Big Tech firms like Meta, Google, and TikTok to support local media. Here’s what’s changing.
Published By: Shubham Arora | Published: Apr 29, 2026, 03:06 PM (IST)
Australia is planning to bring in a new rule that could directly impact companies like Meta, Google, and TikTok. The government has proposed a 2.25% levy on their local revenue, but there's a condition attached to it. This is not just about adding a new tax. The move is tied to how these platforms use news content and how local media organisations are being supported.
What exactly is being proposed
The plan is part of what the government is calling the News Bargaining Incentive. Under this, big tech platforms will have two choices. They can either strike deals with local news publishers and pay them for content, or they will have to pay a 2.25% levy on their Australian revenue.
The rule is likely to apply to platforms that have a strong presence in the country and earn a significant amount of revenue locally. Reports suggest this could start from the 2025-26 financial year, which kicks off from July 1.
There is also some flexibility built into the system. If companies sign more deals with publishers, the effective rate could come down.
Why Australia is doing this
The government's argument is fairly direct. A lot of people now consume news through platforms like Facebook, Google, and TikTok instead of going directly to news websites.
Communications Minister Anika Wells said that these platforms benefit from journalism that appears on their services, and it is only fair they contribute back to the industry.
This is also not the first attempt. Australia had earlier introduced rules in 2021 to make tech companies pay for news content. But those rules did not work as expected, mainly because platforms could avoid payments by removing news content altogether.
What changed this time
The new proposal tries to close that gap. Even if a platform decides not to show news, it can still be taxed under this system. This makes it harder for companies to avoid paying, which is what happened earlier when some platforms pulled news content completely.
The updated framework also brings TikTok into the scope, which was not part of the earlier rules.
How Big Tech is reacting
Companies have already pushed back on the idea. Meta has said that the assumption that it takes news content from publishers is not accurate, while Google has also opposed the need for such a tax.
There are also broader concerns around how this could affect global trade. The US has previously objected to digital taxes on its tech companies and has even warned of possible tariffs in such cases.
What it means for media companies
For local news organisations, this could become an important source of funding. The money collected through this levy is likely to go back into the news ecosystem, helping media houses run their operations and support jobs in newsrooms.
Most media organisations in Australia are backing the move, mainly because traditional revenue sources like ads have been under pressure for a while now.
What happens next really depends on how these companies respond. They can either strike deals with publishers or end up paying the levy instead.
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