How can the News Bargaining Incentive support ‘a strong and sustainable news sector’?

Intended to foster dealmaking between digital platforms and news organisations, reforms to the previous News Media Bargaining Code have managed to draw criticism from big tech, local journalism, and further ashore.

Observers are wondering whether the system will truly incentivise productive deals and create or protect media jobs, or whether it will simply make a lot of noise while shifting money around, without addressing systemic issues within the industry.

In the same vein, questions are being asked concerning the ease with which tech companies may sign deals to wipe their tax liability or simply pay the fine and avoid making the deals.

As explained by Minister for Communications Anika Wells: “The News Media Bargaining Incentive means if a platform doesn’t do a deal with a news publisher, the money will come to us and we will deliver that funding to news organisations based on how many journalists they employ. The more journalists they have, the more money they will get under this proposal.”

“The media landscape has changed dramatically, and we all know most Australians are now consuming content online. People are increasingly getting their news directly from Facebook, from TikTok, and from Google. And we believe it’s only fair that large digital platforms contribute to the hard work of journalism that enriches their feeds and that drives their revenue.”

First announced by the federal government on 12 December 2024, the News Bargaining Incentive (NBI) is now draft legislation about to be put before Parliament after the public consultation period ended on 18 May this year.

In a press conference before Parliament House on 28 April, Prime Minister Anthony Albanese announced: “Our government is taking the next steps to ensure that Australian journalism is sustainable.”

He said: “It will envisage some 2.25 per cent of Australian revenue being paid. That can be offset through deals, by 150 per cent for deals done with traditional media and 170 per cent through deals done through smaller media organisations.”

“Every single dollar will go back to journalists to pay for the journalism that you all produce here in the Gallery, but newsrooms right around the country produce as well. This is important for the integrity of the system.”

This, however, runs the risk of tech platforms choosing to simply pay the levy or simply avoiding the conversation altogether – and big tech has already made this known.

As reported by ABC on 28 April, a Meta spokesperson said: “This proposed legislation, which would apply to platforms regardless of whether news content even appears on our services, is nothing more than a digital services tax.”

This was a fairly predictable response from the conglomerate, following an announcement in 2024 that it would pull out of commercial news deals in Australia.

In his 28 April press conference, Albanese said: “At this point, the three organisations, Meta, Google, and TikTok as well have been consulted with, and we’ll continue to engage with.”

However, it is here where many have started to question the viability of deals.

While the incentive is also intended to encourage diverse spending from platforms, companies such as Meta could satisfy the law by simply approaching large media networks, hit the cap, and reduce their tax liability, without supporting the broader media ecosystem.

While the Community Broadcasting Association of Australia (CBAA) supported the NBI “as a mechanism to address disruption in the information ecosystem caused by digital platforms”, it called for the government to address the impact on small, independent, multicultural or regional news publishers.

In a release on 21 May, the union said: “We are concerned about the risk of unintended consequences of the legislation design that could further entrench media concentration and give global digital platforms undue influence in Australia’s democracy.”

The CBAA suggested two main amendments: that of the incentive structure requiring “at least 25 per cent of deals be made with small and medium publishers”, and changing the offset rate to be “materially increased for small and medium publishers”.

“These changes do not change the structure of the proposed legislation, nor the quantum of obligation required from the digital platforms. They create greater opportunity for small and medium-sized publishers to engage with the Incentive and improve the efficacy of the scheme and outcomes for media competition and diversity,” it said.

In one of the most public criticisms, the Trump administration has staunchly criticised the incentive.

As first broken on 29 April by The Australian Financial Review, US administration spokesperson Kush Desai said: “President Trump is committed to defending America’s leading technology sector from digital services taxes and other forms of foreign extortion.”

On the other end of the spectrum, the 19 May submission to the News Bargaining Incentive Draft Legislation by the Media, Entertainment & Arts Alliance (MEAA) highlighted its support for the proposed changes.

While, back in 2024, the union expressed only “cautious support” – acknowledging that the reforms would end the negotiation deadlock, but noting that better transparency and assurances are necessary – its most recent statement said: “MEAA is strongly supportive of the government’s proposal to tie funds delivered through the Inventive to journalists’ jobs.”

“It ensures that funding delivered to news media organisations is spent on the production of public interest journalism. Without such guardrails, there would be no clear assurance that funds delivered would be used to support journalism and were not simply handed out as executive bonuses or shareholder returns.”

Similarly, a joint statement issued by the ABC, Australian Community Media, News Corp Australia, Nine Entertainment Co, Network Ten, SBS, Southern Cross Media Group, and The Guardian Australia – as reported by the ABC – agreed that “the government’s News Bargaining Incentive draft legislation is a critical step toward securing the future of Australian news. By prioritising commercial deals this legislation protects our democratic way of life.”

It continued: “The vibrancy of Australian democracy relies on the robust and open exchange of news, views and opinions.”

“It is under threat.”

“We urge all parliamentarians to support safeguarding Australian journalism and the vital role it plays in our democracy, for all Australians.”

With public consultation closed on the draft legislation, the federal government is likely to introduce the package of bills – the News Media Bargaining (Administration) Bill 2026, the News Media Bargaining Charge Bill 2026, and the Treasury Laws Amendment (News Media Bargaining) (Consequential) Bill 2026 – over the next few months.

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