The Australian government picked a fight with Big Tech this year, and the US administration called it “foreign extortion”.
What it is
The News Bargaining Incentive was released as draft legislation by the Albanese government in late April 2026. Under the draft, big social media and search platforms face a 2.25% charge on their Australian revenue unless they strike commercial deals with local news publishers. Deals offset the charge.
It covers platforms with more than A$250M in annual Australian revenue and large user bases, which right now means Meta, Alphabet and TikTok. AI platforms are not included.
How we got here
In 2021 Australia brought in the News Media Bargaining Code, which pushed platforms into deals with publishers. In early 2024 Meta walked away from its Australian news deals, which the industry put at a loss of about $70M a year. The new scheme replaces the code and is expected to raise about $250M a year for Australian journalism.
The pushback
A Trump administration spokesperson called the levy “foreign extortion”. Google said “We reject the need for this tax.” Meta called it “nothing more than a digital services tax.” The US tech lobby group CCIA called it discriminatory.
Where it landed
Consultation pushed the bill past the winter recess, and it passed parliament in August 2026 with changes, including a bigger share of money for regional and smaller publishers.
My read
This is now a global fight, and Australia went first, again. Whether it works comes down to whether the platforms sign deals or just pay the charge.