Australia is planning a 2.25% levy on big tech companies if they do not reach deals with local news publishers.
The proposal targets platforms like Meta, Google and TikTok.
Under the plan, firms must either agree to pay for news content or pay the levy on their Australian revenue.
Officials say the move is to support journalism as more people get news online.
“People are increasingly getting their news directly from Facebook, from TikTok and from Google,” Communications Minister Anika Wells said.
She added that tech companies should help fund the journalism that appears on their platforms.
Prime Minister Anthony Albanese said Australia will act in its own interest.
“We’re a sovereign nation,” he said.
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The levy would start in July 2025 and apply to large digital firms earning over A$250 million locally.
Money raised will go to news organisations based on newsroom size.
Major media groups like Nine Entertainment, ABC and News Corp Australia support the plan, calling it important for the survival of journalism.
However, tech firms disagree.
Meta said the idea it relies on news content is “simply wrong.”
Google also rejected the plan, saying it does not support the tax.
TikTok has not yet made a public comment.
The new system would replace Australia’s earlier news bargaining rules introduced in 2021.