Australia is set to overhaul its media licensing legislation on Thursday with a updated reform package designed to force major technology companies into broader commercial arrangements with local news publishers. The proposed framework aims to redistribute digital advertising revenues to a wider array of domestic media organizations, ensuring that funding reaches smaller and more diverse outlets.
Key structural components of the revised bill include:
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Expanded Deal Thresholds: Digital platforms will now be mandated to execute commercial agreements with a minimum of eight Australian media companies—an increase from the six-firm requirement proposed in earlier drafts.
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Support for Public-Interest Journalism: The government has guaranteed that 5% of all total funds collected through the national scheme will be directly allocated to the Australian Associated Press (AAP), the non-profit independent news wire service that narrowly avoided closure in 2020.
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Single-Deal Revenue Caps: A strict cap will be reinstated, limiting any individual content agreement to no more than 25% of a tech platform’s total levy obligation. This liability is calculated at 2.5% of a platform’s total Australian advertising revenue, with commercial deal values directly offsetting the final levy owed.
This legislative push reinstates Canberra’s campaign to redirect digital ad revenue from multinational tech platforms—whose engagement relies heavily on media content—back into the local journalism ecosystem. Communications Minister Anika Wells noted that the updated distribution model reflects changing news consumption habits while providing critical structural support to smaller publishers and independent wire services like the AAP.
The reform succeeds Australia’s landmark 2021 News Media Bargaining Code, which originally forced major players like Google and Meta to negotiate licensing fees under threat of binding arbitration. The government was prompted to redesign the system after Meta announced plans to exit paid news content agreements globally, exposing vulnerabilities in the original voluntary bargaining structure.
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