Meta Platforms Inc. (META, Financials), the social media and digital advertising company, could face higher costs in Australia under a revised government plan aimed at pushing large technology platforms into commercial agreements with local news organizations.
The government increased the proposed News Bargaining Incentive levy to 2.5% from 2.25%. The charge would apply to advertising revenue rather than a company's total Australian revenue, narrowing the tax base while raising the rate.
The framework would cover companies operating significant search or social media services in Australia with local revenue above A$250 million, or about $175.7 million. Google, TikTok and Meta are expected to fall within its scope.
The government also removed a proposed exemption for professional networking platforms, potentially bringing Microsoft-owned LinkedIn under the rules.
Officials said money raised through the levy would be directed toward the news media sector and support local journalism. Companies could avoid the charge by reaching qualifying commercial agreements with publishers.
The proposal may increase operating costs for large digital platforms, although the final financial effect will depend on the value and structure of any negotiated agreements.