Australia: Greens propose tech tax to support traditional media, call for gambling ad ban

The Greens have proposed a new tax on technology giants to support traditional media, coupled with a ban on all gambling advertisements, as commercial broadcasters seek compensation in response to Labor’s proposed restrictions.

Greens communications spokesperson Sarah Hanson-Young dismissed Bill Shorten’s claim that free-to-air television relies on gambling ad revenue to survive, calling it a “lie” and arguing that “profiting from the misery and addiction of gambling is not the answer” to the challenges facing the media industry, The Guardian reported.

Instead, Hanson-Young suggested a “tech tax” targeting global companies like Meta, Google, and TikTok to fund journalism and content they monetize. The comments precede the release of a report by the joint select committee on social media, which has been examining Meta’s decision not to renew media funding agreements.

Prime Minister Anthony Albanese confirmed that the government is considering a social media levy, indicating that tech companies should not be allowed to “ride free” on the resources of traditional media. Meanwhile, media companies are lobbying for a gradual introduction of the proposed gambling ad restrictions and seeking compensation for potential revenue losses.

Labor’s plan includes banning gambling ads online, during children’s programming, and around live sports broadcasts, while limiting them to two per hour in general TV programming. However, search engines like Google would be exempt from these restrictions.

With gambling ads contributing over $200 million annually to free-to-air TV and radio, industry body Free TV Australia is advocating for compensation, including the removal of the $50 million commercial broadcasting tax on transmitter licenses, the report said. CEO Bridget Fair emphasized the significant revenue impact these restrictions would have and called for a reduction in other regulatory burdens on broadcasters.

The Alliance for Gambling Reform has also launched a shareholder activism campaign, with plans to propose resolutions at the upcoming annual general meetings of Nine Entertainment and Seven West Media, pushing for a stronger stance against gambling advertisements.