Regional news publishers, including Sunshine Coast Publishing Company, have welcomed the release of draft News Bargaining Incentive legislation.
Prime Minister Anthony Albanese on Tuesday unveiled the draft, which encourages agreements to be struck between tech giants and media companies.
If deals are struck between the companies for content, the social media platforms will only pay 1.5 per cent of revenue to the government, compared with a higher amount of 2.25 per cent if no deal is made.
Australian journalism needed to be properly paid for by tech companies, Mr Albanese said.
“Our government is taking the next steps to ensure that Australian journalism is sustainable now and into the future, by ensuring that large digital platforms cannot avoid their obligations,” he said.
“What we are encouraging is for organisations to sit down with news organisations, get these deals done, and then we can move forward.”
The draft laws were released ahead of the legislation being introduced to parliament in coming weeks.
The deals would be offset by 150 per cent if agreements are struck with large media organisations, and 170 per cent for smaller newsrooms or non-traditional outlets.
Damian Morgan, president of Country Press Australia, which represents more than 240 regional and community news publications and their digital news services across the country, said the proposed legislation was an important step toward restoring fairness between Australian news publishers and major global digital platforms.
“Professional journalism costs money to produce,” Mr Morgan said.
“Large digital platforms derive value from that journalism, but they do not employ the local reporters, editors and photographers who create it.
“The News Bargaining Incentive is designed to encourage fair commercial agreements so Australian journalism can remain sustainable.”
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Country Press Australia said the proposed legislation builds on the News Media Bargaining Code introduced by the former government, which established the important principle that powerful global technology platforms should contribute to the cost of the news content from which they benefit.
The organisation acknowledged the genuine contribution technology companies have made to modern life, including connectivity, commerce, search, social connection and access to information.
It also recognised that Google has continued to engage constructively with Australian news publishers and has shown that commercial agreements between global technology companies and Australian media businesses are possible.
A Google spokesman confirmed the company already had agreements in place with media organisations in Australia.
“While we are currently reviewing the draft legislation, we have been clear: we reject the need for this tax,” the spokesman said.
“[The proposal] misunderstands how the ad market has changed and mandates payments from some companies while arbitrarily excluding platforms like Microsoft, Snapchat and OpenAI, despite the major shift in how people consume news.”
Mr Morgan said the responsibility could not fall on one company alone.
“All major digital platforms that derive value from Australian journalism must accept their responsibility. No company should be able to benefit from the credibility, relevance and public value of professional news while avoiding a fair contribution to the cost of producing it.
“Without local news media, communities lose more than a publication or a website. They lose a trusted public record.
“They lose scrutiny of local decision making. They lose a place where facts are checked, rumours are challenged and local stories are told with care and accountability.”
