Australia to charge Big Tech companies 2% levy unless they strike local news deals

Australia has proposed a News Bargaining Incentive that would charge Meta, Alphabet’s Google and TikTok a 2.25% levy on local revenues if they fail to strike deals to pay Australian news outlets. The levy, aimed at funding journalism, would begin in the 2025-26 financial year (from July 1, 2025). Markets could see downside pressure on large U.S. tech equities and elevated regulatory risk for the sector; the announcement also raises the prospect of U.S. retaliation (President Trump has threatened tariffs), which could modestly affect risk sentiment and currency flows. Direct FX impact on AUD/USD is likely limited but geopolitical and trade tensions could add volatility to AUDUSD and related assets while redistributing advertising revenues to local media.