Albanese government set to pass new media bargaining code
The government and opposition have reached a deal on the hotly debated News Bargaining Incentive.
The Albanese government is set to pass legislation for a new media bargaining code aimed at compelling tech companies to compensate Australian publishers for the news content they use. Following talks this week, the Exposure Draft has undergone revisions. The News Bargaining Incentive and News Journalism Payments bills will be introduced to Parliament on Thursday.
Under the scheme, platforms such as Google, Meta, and TikTok will be required to pay a tax based on their digital advertising revenues if they cannot negotiate deals with Australian publishers. This applies to major platforms, but AI platforms will be exempt. The government has made several adjustments to the previous draft. The minimum number of deals platforms must make to comply with the scheme has risen from six to eight.
A cap restricting any single deal from offsetting more than 25% of a platform’s obligation has been reinstated, reversing a prior decision to lower this limit. This alteration aims to provide more equitable offsets for media organizations of varying sizes, considering their market reach and significance.
Critics argue that the broader cap could benefit larger entities over smaller ones, particularly in regional areas. However, the government maintains that the increased number of required deals will still ensure platforms meet their tax liabilities. They also assert that calculating the base rate using the two preceding years instead of three will better reflect the dynamic nature of the market.
Additionally, 5% of incentive funds will be allocated to the Australian Associated Press (AAP), a prominent news-wire service, recognizing its crucial role in supporting public interest journalism. Assistant Treasurer Daniel Mulino emphasized the government’s commitment to fostering deals between digital platforms and a diverse array of media organizations, aiming to ensure fair compensation for content usage and strengthen the media sector from large to small entities.
Communications Minister Anika Wells stated that the adjustments to the distribution scheme are designed to better support smaller and diverse media organizations, given the varied ways people access news. The legislation is anticipated to receive parliamentary approval within the current session.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
