The Australian government has announced plans to impose a 2.25% levy on major digital platforms, including Meta, Google and TikTok, unless they enter agreements to compensate local news publishers for content distributed on their services.

Prime Minister Anthony Albanese said on Tuesday that the companies would be given the option to negotiate commercial arrangements with Australian media organisations or face the levy, which would be calculated based on their domestic revenue.

The proposed legislation is part of broader efforts to support the country’s news industry, which has come under pressure as audiences increasingly consume news through social media platforms.

According to the government, the policy aims to ensure digital platforms remunerate publishers whose content contributes to user engagement and advertising revenue. Albanese said the companies targeted by the measure were selected due to their significant local earnings and large user bases, adding that they remain subject to obligations under Australia’s news media bargaining framework.

He also said the reforms are intended to address shortcomings in earlier laws that allowed platforms to avoid payment requirements by removing news content from their services. The proposed rules are designed to discourage such actions and encourage continued commercial agreements with publishers.

The announcement follows previous tensions between regulators and technology firms. In 2024, Meta restricted access to news features for Australian users during earlier negotiations over similar proposals. The company has also allowed content deals with publishers to lapse in several countries, including the United States, United Kingdom, France and Germany. Google has likewise previously warned it could scale back certain services in Australia if required to pay for news content.

Albanese said journalism must be appropriately valued, warning that multinational technology companies should not profit from news content without compensating its creators.

Supporters of the policy argue that digital platforms benefit from news content that drives user traffic while simultaneously diverting advertising revenue away from traditional media organisations.

In response, Meta described the proposal as a form of digital services tax, arguing that publishers share content voluntarily on its platforms in exchange for audience reach and visibility.

Australia’s Communications Minister Anika Wells said it is appropriate for technology companies to contribute to the production of journalism that underpins engagement on their platforms.

The draft legislation has been released for public consultation until May and is expected to be introduced in parliament later this year.