Australia Finalises News Bargaining Incentive Bill, Levies 2.5% on Digital Ad Revenue, Covers LinkedIn

The Australian government has announced the finalisation of the News Bargaining Incentive Bill. Under the legislation, large technology companies that do not sign content licensing agreements with Australian media companies must pay a levy equivalent to 2.5% of their digital advertising revenue earned in Australia. Compared with the draft released in April 2026, the rate has been raised from 2.25% to 2.5%, and the tax base has been changed from "total revenue in Australia" to "digital advertising revenue in Australia." This adjustment means the penalty rate for companies that fail to reach agreements is higher than initially proposed, but the final payment amount will be calculated on a smaller portion of total revenue.

The levy applies to companies that operate significant social media or search services in Australia and earn more than A$250 million in local revenue. Artificial intelligence companies are excluded from the legislation. The bill also removes a previous exemption for professional networking platforms, bringing LinkedIn into the regulatory scope alongside Google, Meta's Facebook and Instagram, and TikTok. The levy applies if a company has not reached agreements with at least six local news organisations. In addition, the final draft includes several other adjustments, such as increasing the allocation ratio for small media outlets and establishing grants for small publishers and startups with annual revenue below A$150,000.

The Australian government first introduced the News Media and Digital Platforms Mandatory Bargaining Code in 2021, requiring platforms to proactively reach commercial payment agreements with local media to avoid being designated as platforms subject to final-offer arbitration. In 2024, Meta announced it would not renew agreements with Australian news publishers and said it would gradually remove news features. In 2026, the government proposed a new bill to close loopholes, but Meta has continued to express opposition to the policy.