Country Press Australia has welcomed federal government plans to establish the News Bargaining Incentive to ensure large digital platforms contribute to the sustainability of news media in Australia.

Announced last week, the incentive is designed to encourage digital platforms to enter into or renew commercial deals with news publishers and follows an announcement by Meta in March that it would not renew agreements with publishers, including Country Press Australia member mastheads.
Under the incentive, search and social media companies that failed to reach agreements with publishers would be forced to pay a charge, with 100 per cent of those funds collected then distributed to eligible publishers. The value of any agreements reached would be offset against the tax payable by the companies.
CPA president and Gazette general manager Andrew Schreyer said the News Bargaining Incentive would help deliver important financial support and recognition to publishers for the valuable work they did.
"In the overwhelming majority of communities in regional, rural and outer-suburban Australia where our members operate, they are the only provider of hyper-local place based public interest journalism to those communities.
"And as such, the local paper's role as an important piece of democratic infrastructure cannot be overstated."
He said the incentive was good news for publishers who otherwise faced ongoing challenges in the wake of Meta's previous decision to not renew agreements.
"Local papers command an overwhelming share of voice across the broader regional, rural and outer-suburban landscape and it's pleasing to see the increased recognition from government of the role our papers play in the communities they serve."
Announcing the incentive, the government acknowledged the previous News Media Bargaining Code had limitations in that it allowed platforms to avoid their obligations by removing news.
However, the new incentive will encourage digital platforms to enter into or renew commercial deals with news publishers.
The new incentive will not be a revenue raising policy for the government.
Financial Services Minister Stephen Jones said the government wanted Australians to continue to have access to quality news content on digital platforms.
"Digital platforms receive huge financial benefits from Australia, and they have a social and economic responsibility to contribute to Australians' access to quality journalism. This approach strengthens the existing code by addressing loopholes that could see platforms circumvent their responsibility to pay."
The government will consult stakeholders on the final design of the scheme. A public consultation paper is expected to be released in early 2025, and the incentive will take effect from January 1, 2025