Washington – The Australian government introduced a package of legislation today to establish its News Media Bargaining Incentive, including a measure that would impose a financial penalty on a narrow set of predominantly foreign digital services unless they enter into payment arrangements with qualifying Australian news publishers.
The legislation follows the government’s April draft proposal and subsequent revisions announced in August. Under the finalized News Media Bargaining Charge Bill 2026 introduced today, covered services would face a charge at a rate of 2.5%, while the News Media Bargaining (Administration) Bill 2026 defines the covered Australian digital advertising revenue base and allows qualifying payments to Australian news businesses to offset that liability. The Administration Bill also requires covered services to enter into agreements with at least eight news businesses to qualify for the offset.
Despite revisions to the mechanics of the proposal, its fundamental structure remains unchanged. The measure would effectively function as a coercive levy designed to induce covered digital services to make payments to Australian news businesses—raising concerns under Australia’s international trade commitments, including rules prohibiting certain performance requirements.
The Computer & Communications Industry Association has repeatedly raised concerns about the News Media Bargaining Incentive, including in comments on the draft legislation and previous analysis of Australia’s news bargaining policies. CCIA urges the U.S. government to publicly challenge discriminatory treatment of U.S. digital services and to consider appropriate trade remedies if the measure becomes law.
The following can be attributed to CCIA President and CEO Matt Schruers:
“Australia has revised the details of its News Media Bargaining Incentive, but it has not fixed the fundamental problem. This remains a thinly veiled discriminatory tax that disproportionately targets U.S. digital services. It uses the threat of a financial penalty to coerce payouts to Australian news businesses.”
“Changing the tax base or adjusting how qualifying news deals are structured does not resolve the measure’s discriminatory design or its implications for Australia’s commitments under the Australia-United States Free Trade Agreement. If enacted, this would further undermine predictable, rules-based digital trade and create a troubling precedent for governments seeking to compel revenue transfers from foreign suppliers to favored domestic industries.”
“The U.S. Government should make clear its opposition and be prepared to use appropriate trade tools to address discriminatory treatment of U.S. companies. Australia should instead pursue non-discriminatory approaches to supporting journalism that do not distort digital markets or undermine the open internet.”
