Australian Government Proposes Tax on Digital Platforms

The Australian government plans to impose a tax on major digital platforms and search engines, effective January 1, unless they agree to share revenue with local news media organizations. The tax targets companies like Meta and Google with annual revenues exceeding AUD 250 million in Australia and aims to incentivize revenue-sharing agreements rather than generate government revenue. This initiative follows Meta's decision to not renew agreements with Australian news publishers, thus prompting government action to support local journalism. Communications Minister Michelle Rowland emphasized the importance of sustaining public interest journalism as a key objective of the new tax framework. The tax is designed to ensure that digital platforms contribute to the health of democracy in Australia by supporting diverse media outlets. Further specifics, including the tax rate and revenue distribution formula, are yet to be determined.