Why is the government shifting from the current bargaining code to this new levy?

The existing Code allowed platforms to avoid payments by simply withdrawing news content. The new News Bargaining Incentive (NBI) closes this loophole by taxing platforms based on their total Australian revenue—a pool worth $41 billion—regardless of whether they carry news.

How much revenue will the media industry actually see from this change?

The NBI is designed to generate $600 million per annum for news publishers. This injection is intended to more than double the $300 million in lost revenue anticipated from upcoming restrictions on gambling advertising.

Which specific companies fall under the scope of this new regulation?

The regulation targets any digital platform with annual Australian revenue exceeding $250 million. This currently captures five major global entities: Google, Meta, Microsoft, TikTok, and Apple.

Is the government using this as a new source of tax revenue?

The government intends to collect zero revenue from the NBI. It uses a 150% deduction rate for eligible expenditure to force platforms into private commercial deals rather than paying a direct levy to the Treasury.

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Australian Government Must Win the News Bargaining Battle

New NBI scheme targets $41bn in platform revenue to offset $300m in lost media gambling ad revenue.

David Kennedy · Venture Insights5 December 2025Period: Q4 20256 min read

$41 billion→

Estimated annual Australian revenue of targeted digital platforms

$600 million↑

Potential annual payments to news publishers under the NBI scheme

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Abstract

The Australian Treasury's consultation paper outlines a significant shift in media regulation, moving from voluntary encouragement to a mandatory levy system. By targeting platforms based on total Australian revenue rather than news carriage, the government seeks to close loopholes that allowed companies to avoid payments by withdrawing news content. This analysis explores the financial mechanics of the NBI, its role in offsetting industry losses from gambling advertising restrictions, and its broader implications for the government's ability to regulate global tech giants.

Key Takeaways

The Australian Treasury has proposed a News Bargaining Incentive (NBI) to replace the current 'News Withdrawal' loophole in the existing Code.
Large digital platforms with over $250 million in Australian revenue will be taxed based on size rather than news carriage.
The NBI aims to generate over $600 million per annum for news publishers, offsetting a projected $300 million loss from gambling ad bans.

What's Inside

The existing News Bargaining Code - fit for purpose?

The News Bargaining Incentive Scheme

Findings

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2-section deep analysis · stakeholder implications · PDF download

Abstract

Key Takeaways

What's Inside

The existing News Bargaining Code - fit for purpose?

The News Bargaining Incentive Scheme

Frequently Asked Questions

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