By Stuart Condie

SYDNEY--Australia aims to tax major tech companies 2.25% of local revenue if they don't agree to pay local media outlets for news distributed on Facebook, Google and TikTok.

Australia's federal government on Tuesday released a draft of proposed legislation under which the owners of social-media platforms would be charged if they don't enter into commercial agreements.

The levy would apply to companies generating more than US$180 million in local revenue. Entities would reduce their liability by paying local media organizations for news content.

Prime Minister Anthony Albanese named Facebook owner Meta, Alphabet's Google and Bytedance-owned TikTok as companies consulted on the proposal. Any revenue generated by the tax would go to media providers, Albanese said.

"Investment in journalism is critical to a healthy democracy. It matters. It's something that defines the way that Australian society operates," Albanese told a media conference.

Australia has been trying to make tech companies pay local media for several years. In 2021, it enacted a so-called news media bargaining code aimed at pressuring Meta and Google into commercial deals with publishers.

Two years ago, Meta said it wouldn't renew deals in Australia or the U.S.

On Tuesday, Meta called the latest proposal a digital-services tax. Last week, President Trump threatened the U.K. with tariffs over its six-year-old digital-services tax, which levies 2% of large tech companies' revenues.

Google said it already supports Australian journalism through existing licensing agreements.

"While we are currently reviewing the draft legislation, we have been clear: we reject the need for this tax," Google said in a statement.

Bytedance didn't immediately respond to a request for comment.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

April 28, 2026 02:55 ET (06:55 GMT)

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