⚖️ Australia News Tax

Author

Liam Gill
December 19, 2024

Australia’s Push for a News Tax

Australia’s proposed legislative amendment builds on its earlier News Media Bargaining Code, which required platforms like Meta and Google to pay publishers for journalism. After Meta decided to halt $70 million in publisher payouts, the government aims to compel platforms with annual local revenues exceeding $250 million to pay a “news tax.” Any voluntary payments to publishers would offset this tax, signalling Australia’s intention to revive negotiations and secure fair compensation for news content shared on Big Tech platforms.

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Implications for Tech Startups

For startups in the Australian market or those dependent on content-driven ecosystems, this legislation underscores the growing regulatory focus on the value of content. If startups leverage news content in their platforms, they should anticipate potential ripple effects, such as stricter licensing requirements or rising content acquisition costs. Conversely, smaller tech firms not directly affected by the revenue threshold could find opportunities to compete in spaces where larger platforms scale back on news-related features.

Preparing for the Regulatory Shift

Startups should monitor the legislative process and assess how the news tax might impact their business models. Companies reliant on platform distribution for news or content partnerships must evaluate the risks of reduced exposure or increased costs. On the other hand, this development calls for innovation: Startups can explore alternative models, such as direct partnerships with publishers, to sidestep reliance on Big Tech. Proactively engaging in public consultations on the legislation could also position startups as forward-thinking participants in the evolving content economy.

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