Australia plans tax on big tech to support news industry

Under the proposal, if these platforms do not make deals with news companies, they will reportedly have to pay a 2.25% tax on their revenue earned in Australia. However, if they agree to pay news publishers directly, their tax amount will be reduced.

The government expects this plan to collect around 200 to 250 million Australian dollars per year, which will be distributed to news organizations based on how many journalists they employ, as per reports. 

Prime Minister Anthony Albanese reportedly said that journalist work has value and should not be used for free by large companies to earn profits. The government believes this step is important to support a strong and independent media, which is necessary for a healthy democracy. This is Australia’s second attempt after 2021 the News Media Bargaining Code,which earlier pushed companies to make payment deals with news publishers.

However, many platforms later stopped renewing those agreements and even removed news content from their services. 

Google also rejected the idea, saying it already has agreements with news companies and that the tax does not reflect how the advertising industry works today. Despite criticism, the Australian government says it will move forward with plan in the national interest.