An Act to implement a news media bargaining charge, and for related purposes
[Assented to 26 August 2026]
The Parliament of Australia enacts:
Part 1—Preliminary
1 Short title
This Act is the News Media Bargaining (Administration) Act 2026.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
The whole of this Act The day after this Act receives the Royal Assent. 27 August 2026
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Simplified outline of this Act
Charge is payable by an entity for a financial year if the entity (or the entity’s group if the entity is the head of a corporate group):
(a) provides a social media or internet search service of significance for Australia in the financial year; and
(b) has total relevant Australian digital advertising revenue that exceeds $250 million for the financial year.
The charge can be wholly or partly offset if the entity (or the entity’s group) provides consideration to Australian news businesses during the financial year:
(a) for the production, or to support the production, by the news businesses of news content; or
(b) in connection with news content produced by the news businesses being made publicly available online by the entity (or the entity’s group).
4 Extension to external Territories
This Act extends to the external Territories.
5 Extra‑territorial application
This Act extends to acts, omissions, matters and things outside Australia.
Part 2—Definitions
6 Definitions
In this Act:
accounting standards means:
(a) accounting standards within the meaning of the Corporations Act 2001; or
(b) international accounting standards made or adopted by the International Accounting Standards Board; or
(c) accounting standards made by a body of a foreign country that correspond to, and are equivalent to, standards covered by paragraph (a) or (b).
Note: For paragraph (b), in 2026 the international accounting standards can be accessed from the IFRS website (https://www.ifrs.org).
active Australian user has the meaning given by subsection 7(3).
affiliate has the same meaning as in the Income Tax Assessment Act 1997.
amount includes a nil amount.
Australia, when used in a geographical sense, includes the external Territories.
avoider has the meaning given by paragraph 22(1)(a).
carriage service has the same meaning as in the Telecommunications Act 1997.
carried forward eligible expenditure means an amount that is eligible expenditure because of subsection 17(3).
charge means charge imposed by the News Media Bargaining Charge Act 2026.
charge benefit has the meaning given by subsection 23(1).
charge offset has the meaning given by subsection 17(1).
Commissioner means the Commissioner of Taxation.
connected with has the same meaning as in the Income Tax Assessment Act 1997.
control, of an entity by another entity, means control of the entity within the meaning of the accounting standards.
controlled entity: an entity is a controlled entity of another entity if the other entity controls the entity.
covered news content has the same meaning as in Part IVBA of the Competition and Consumer Act 2010.
electronic service means:
(a) a service that allows end‑users to access material using a carriage service; or
(b) a service that delivers material to persons having equipment appropriate for receiving that material, where the delivery of the service is by means of a carriage service;
but includes neither a broadcasting service, nor a datacasting service, within the meaning of the Broadcasting Services Act 1992.
eligible expenditure has the meaning given by subsection 17(2) or (3).
financial reporting period, for a service group, means a financial reporting period:
(a) of the parent entity of the service group; and
(b) as determined in accordance with accounting standards that are applicable to the parent entity of the service group.
material means material:
(a) whether in the form of text; or
(b) whether in the form of data; or
(c) whether in the form of speech, music or other sounds; or
(d) whether in the form of visual images (moving or otherwise); or
(e) whether in any other form; or
(f) whether in any combination of forms.
new eligible expenditure means an amount that is eligible expenditure because of subsection 17(2).
news business has the same meaning as in Part IVBA of the Competition and Consumer Act 2010.
news business corporate group has the meaning given by subsection 11(2).
parent entity means a person that is not controlled by any other entity.
Note: A parent entity may be a single entity that is not a member of a group of entities.
posted: material is posted on a service by an end‑user if the end‑user causes the material to be accessible to, or delivered to, one or more other end‑users using the service.
Note: Other parts of speech and grammatical forms of “posted” (for example, “post”) have a corresponding meaning (see section 18A of the Acts Interpretation Act 1901).
registered news business has the same meaning as in Part IVBA of the Competition and Consumer Act 2010.
registered news business corporate group has the meaning given by subsection 11(1).
registered news business corporation has the same meaning as in Part IVBA of the Competition and Consumer Act 2010.
relevant Australian digital advertising revenue has the meaning given by section 10.
scheme has the meaning given by subsection 23(2).
search service has the meaning given by section 9.
service includes a website.
service group: a parent entity’s service group means the group consisting of:
(a) the parent entity; and
(b) all other entities (if any) that are controlled by the parent entity.
The group is also the service group of each of those other entities.
significant social media or search service has the meaning given by section 7.
small or medium business entity, for a financial year, means an entity that:
(a) is a small business entity (within the meaning of the Income Tax Assessment Act 1997) for the financial year; or
(b) is not a small business entity (within the meaning of that Act) for the financial year, but would be if:
(i) each reference in Subdivision 328‑C (about what is a small business entity) of that Act to $10 million were instead a reference to $50 million; and
(ii) the reference in paragraph 328‑110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this paragraph.
social media service has the meaning given by section 8.
use, of a thing, means use of the thing either:
(a) in isolation; or
(b) in conjunction with one or more other things.
7 Meaning of significant social media or search service
(1) A service is a significant social media or search service for a financial year if:
(a) the service is:
(i) a social media service; or
(ii) a search service;
other than a service of a kind prescribed by the rules; and
(b) one or more members of a service group provide the service on the last day (the last reporting day) of the group’s 12‑month financial reporting period ending during the financial year; and
(c) the average monthly active Australian users of the service for the group’s previous 12‑month financial reporting period exceeds:
(i) for a social media service—the higher of 5 million or a number prescribed by the rules; or
(ii) for a search service—the higher of 10 million or a number prescribed by the rules.
(2) For the purposes of paragraph (1)(c), if:
(a) another social media service, or search service, became the service before the last reporting day; and
(b) that other service was provided during the reporting period referred to in that paragraph;
treat the service, and that other service, as if they were a single service.
Example: Assume 6 months into that reporting period changes were made to a search service that were significant enough to result in a new search service. Assume we are determining whether this new service is a significant social media or search service for the financial year. The average in paragraph (1)(c) for this new service is worked out using:
(a) the number of active Australian users of the new service for the final 6 months of that reporting period; and
(b) the number of active Australian users of the original service for the first 6 months of that reporting period.
(3) A person is an active Australian user of a service for a month in a 12‑month period if the person accesses the service from within Australia at least once during the month.
8 Meaning of social media service
(1) A social media service is an electronic service that satisfies the following conditions:
(a) the sole purpose, or a significant purpose, of the service is to enable online social interaction between 2 or more end‑users;
(b) the service allows end‑users to link to, or interact with, some or all of the other end‑users;
(c) the service allows end‑users to post material on the service.
(2) For the purposes of paragraph (1)(a), online social interaction includes online interaction that enables end‑users to share material for social purposes.
Note: Social purposes does not include, for example, business purposes.
(3) Despite subsection (1), none of the following electronic services are social media services:
(a) services that have the sole or primary purpose of enabling end‑users to communicate by means of messaging, email, voice calling or video calling;
(b) services that have the sole or primary purpose of enabling end‑users to play online games with other end‑users;
(c) services that have the sole or primary purpose of enabling end‑users to share information (such as reviews, technical support or advice) about products or services;
(d) services that have the sole or primary purpose of supporting the education of end‑users;
(e) services that have the sole or primary purpose of supporting the health of end‑users;
(f) services that have a significant purpose of facilitating communication between educational institutions and students or students’ families;
(g) services that have a significant purpose of facilitating communication between providers of health care and people using those providers’ services.
(4) In determining whether the condition set out in paragraph (1)(a) is satisfied, or whether a service is covered by subsection (3), disregard the following:
(a) the provision of advertising material on the service;
(b) the generation of revenue from the provision of advertising material on the service.
9 Meaning of search service
(1) A search service is an electronic service that satisfies the following conditions:
(a) the service is an internet search engine service;
(b) the service enables searches of the internet broadly, rather than just searches:
(i) of a limited database; or
(ii) to compare prices for particular goods or services; or
(iii) to compare prices for goods or services across a particular sector;
(c) the service neither solely nor primarily uses large language models.
(2) A service is not excluded by paragraph (1)(c) from being a search service if the service merely uses large language models to summarise or interpret search results.
10 Meaning of relevant Australian digital advertising revenue
(1) A service group has relevant Australian digital advertising revenue, for a financial year and a service, if one or more members of the service group provide the service for a period (the delivery period) that:
(a) is all of the service group’s 12‑month financial reporting period that ends during the financial year; or
(b) is a part of that 12‑month financial reporting period.
(2) The amount of the service group’s relevant Australian digital advertising revenue for the financial year and the service is worked out by:
(a) working out, for each member of the group, the member’s gross revenue, determined in accordance with the accounting standards, for that 12‑month financial reporting period; and
(b) working out, after complying with any requirements prescribed by the rules, the portion of a member’s gross revenue from paragraph (a) that is both:
(i) attributable to advertising on the service during the delivery period; and
(ii) attributable to transactions within or into Australia, or to assets within Australia, during the delivery period that are attributable to the service; and
(c) working out the sum of the portion from paragraph (b) for each member of the group.
The sum from paragraph (c) is the service group’s relevant Australian digital advertising revenue for the financial year and the service.
Example: Service group A provides a service for the first half of the group’s 12‑month financial reporting period that ends in a financial year. As a result of a merger with service group B, group B provides the service for the rest of the reporting period. Under this section:
(a) group A has relevant Australian digital advertising revenue for the financial year and the service attributable to the provision of the service before the merger; and
(b) group B has relevant Australian digital advertising revenue for the financial year and the service attributable to the provision of the service after the merger.
There is no double counting of revenue because of this attribution to different delivery periods within the reporting period (see paragraph (2)(b)).
(3) For the purposes of (but without limiting) subparagraph (2)(b)(ii):
(a) the expression “transactions”, including as used in the expression “transactions within or into Australia”, includes transactions of any kind (including those of a non‑financial nature); and
(b) the expression “transactions within or into Australia” includes transactions relating to active Australian users of the service in a month of the delivery period.
(4) Without limiting paragraph (2)(b), requirements prescribed by the rules for the purposes of that paragraph could deal with the working out of one or more of the following:
(a) when an amount of gross revenue is attributable to advertising on a service during a delivery period;
(b) when advertising is on a service;
(c) when an amount of gross revenue is attributable:
(i) to transactions within or into Australia; or
(ii) to assets within Australia;
during the delivery period that are attributable to a service.
11 Meanings of registered news business corporate group and news business corporate group
(1) A registered news business corporate group, for a registered news business, is the group consisting of the following entities:
(a) the registered news business corporation for the registered news business;
(b) each other entity (if any) that:
(i) is connected with that corporation; or
(ii) is an affiliate of that corporation; or
(iii) is an entity of which that corporation is an affiliate.
(2) A news business corporate group, for a news business, is:
(a) if the news business is a registered news business—the registered news business corporate group for the news business; or
(b) otherwise—the group consisting of a body corporate (the news operator) that meets the requirement in section 52L of the Competition and Consumer Act 2010 in relation to the news business, so long as:
(i) the news business does not form part of another news business that is a registered news business; and
(ii) all of the requirements in paragraph 52G(2)(c) of the Competition and Consumer Act 2010 are met in relation to the news business; and
(iii) if applicable, the body corporate meets the requirement in paragraph 52G(2)(d) of that Act;
and each other entity (if any) covered by subsection (3).
(3) For the purposes of paragraph (2)(b), this subsection covers an entity that:
(a) is connected with the news operator; or
(b) is an affiliate of the news operator; or
(c) is an entity of which the news operator is an affiliate.
Part 3—Liability to pay charge
12 Simplified outline of this Part
Charge is payable by a parent entity for a financial year if:
(a) the parent entity’s service group provides a significant social media or search service in the financial year; and
(b) the service group’s total relevant Australian digital advertising revenue exceeds $250 million for the financial year.
13 Liability to pay charge
(1) Charge is payable by the parent entity of a service group for a financial year if:
(a) the service group’s 12‑month financial reporting period ending during the financial year is a reporting period that starts on or after 1 January 2025; and
(b) one or more members of the parent entity’s service group provide one or more significant social media or search services on the last day of that reporting period (the final reporting day); and
(c) the sum of the totals worked out under subsection (2) for those services exceeds $250 million.
Note: While charge is not payable by a controlled entity in the service group, such a controlled entity may be jointly and severally liable to pay the charge that is payable by the parent entity (see section 129‑15 in Schedule 1 to the Taxation Administration Act 1953).
(2) For each service covered by paragraph (1)(b), work out the total of the following:
(a) the service group’s relevant Australian digital advertising revenue for the financial year and each of the following:
(i) the service;
(ii) any other service that will become the service before the final reporting day;
(b) if earlier in that reporting period:
(i) the service; or
(ii) any other service that will become the service before the final reporting day;
was provided by one or more members of another service group—that other service group’s relevant Australian digital advertising revenue for the financial year and the service so provided by that other service group.
Note 1: If a service group is providing more than one service on the final reporting day, then apply this subsection separately for each of those services.
Note 2: If a service group provides the same service throughout the entire reporting period, then the total revenue from this subsection is only that worked out under paragraph (a) (see subparagraph (a)(i)).
Note 3: If the parent entity’s service group makes changes to a service during the reporting period that are significant enough to result in a new service, then the total revenue from this subsection for the new service is the sum of:
(a) the revenue from providing the new service during the reporting period after the changes are made (see subparagraph (a)(i)); and
(b) the revenue from providing the original service during the reporting period before the changes are made (see subparagraph (a)(ii)).
Example: Assume service group A provides service X throughout the entire reporting period. Assume service group A also provides service Y for the last half of the reporting period after a merger with service group B in the middle of the reporting period. For paragraph (1)(c), group A’s revenue is the sum of the following totals:
(a) the revenue worked out under paragraph (a) after applying this subsection for service X (see subparagraph (a)(i));
(b) the total of the revenue worked out under paragraph (a) for providing service Y for the last half of the reporting period (see subparagraph (a)(i)), plus group B’s revenue worked out under paragraph (b) for providing service Y for the first half of the reporting period (see subparagraph (b)(i)).
This revenue of group B does not count towards whether group B is liable to pay charge because group B is not providing service Y on the final reporting day (see paragraph (1)(b)).
(3) For the purposes of paragraph (2)(b), if the following periods are different:
(a) the 12‑month financial reporting period referred to in paragraph (1)(a) (the first period);
(b) the 12‑month financial reporting period for the other service group referred to in paragraph (2)(b) (the other period);
work out the other service group’s relevant Australian digital advertising revenue as if the other period were instead the first period.
14 Amount of charge
(1) The amount of charge payable by the parent entity for the financial year (the current year) is the amount equal to the following:
Start formula Base times Rate set out in subsection 3(2) of the News Media Bargaining Charge Act 2026 end formula
where:
base means the sum of the totals worked out under subsection (2).
(2) For each service covered by paragraph 13(1)(b) for the parent entity’s service group and the current year, work out the total of the following:
(a) the service group’s relevant Australian digital advertising revenue for the base year and each of the following:
(i) the service;
(ii) any other service that will become the service before the final reporting day;
(b) if in the base reporting period:
(i) the service; or
(ii) any other service that will become the service before the final reporting day;
was provided by one or more members of another service group—that other service group’s relevant Australian digital advertising revenue for the base year and the service so provided by that other service group.
Note 1: If a service group is providing more than one service on the final reporting day, then apply this subsection separately for each of those services.
Note 2: If a service group provides the same service throughout the entire base reporting period, then the total revenue from this subsection is only that worked out under paragraph (a) (see subparagraph (a)(i)).
Note 3: If the parent entity’s service group makes changes to a service during the base reporting period that are significant enough to result in a new service, then the total revenue from this subsection for the new service is the sum of:
(a) the revenue from providing the new service during the base reporting period after the changes are made (see subparagraph (a)(i)); and
(b) the revenue from providing the original service during the base reporting period before the changes are made (see subparagraph (a)(ii)).
Example: Assume service group A provides services X and Y on the final reporting day. Assume group A provides service X throughout the entire base reporting period. Assume service group A provides service Y after a merger with service group B after the base reporting period and before the 12‑month reporting period that ends in the current year. For the definition of base in subsection (1), group A has the sum of the following totals:
(a) the revenue worked out under paragraph (a) after applying this subsection for service X (see subparagraph (a)(i));
(b) group B’s revenue worked out under paragraph (b) for providing service Y for the base reporting period (see subparagraph (b)(i)).
(3) For the purposes of paragraph (2)(b), if the following periods are different:
(a) the following period (the first period):
(i) if the parent entity’s service group exists during the base year and has a base reporting period—that period;
(ii) otherwise—the 12‑month period that ends during the base year at a corresponding time to the time the 12‑month financial reporting period for the parent entity’s service group ends during the current year;
(b) the base reporting period for the other service group referred to in paragraph (2)(b) (the other period);
work out the other service group’s relevant Australian digital advertising revenue as if the other period were instead the first period.
(4) In this section:
base reporting period, for a service group, means the service group’s 12‑month financial reporting period that ends during the base year.
base year means the second‑most‑recent financial year before the current year.
Note: For example, if the current year is the 2026‑27 financial year:
(a) the base year is the 2024‑25 financial year; and
(b) the base reporting period, for the parent entity’s service group, is the service group’s 12‑month financial reporting period that ends during the 2024‑25 financial year.
final reporting day has the meaning given by paragraph 13(1)(b).
Note: This is the last day of the parent entity’s service group’s 12‑month reporting period that ends during the current year.
Part 4—Offsetting charge
15 Simplified outline of this Part
A parent entity’s charge payable for a financial year can be offset by any eligible expenditure that members of the parent entity’s service group have for the financial year.
To be entitled to an offset, the service group must have new eligible expenditure for the financial year in relation to at least 8 different news business corporate groups.
Eligible expenditure is consideration provided to registered news businesses:
(a) for the production, or to support the production, by the news businesses of news content; or
(b) in connection with news content produced by the news businesses being made publicly available online by the service group.
As a transitional measure, consideration for the benefit of news businesses can also be eligible expenditure for financial years near the commencement of this Act.
Consideration provided to a news business that is a small or medium business is given a higher rate when working out the offset.
The offset is non‑refundable, but if the parent entity is entitled to an offset for the current financial year, any excess eligible expenditure can be carried forward to a later financial year.
16 Effect of the charge offset
If a parent entity has a charge offset for a financial year, the entity may apply the offset against the entity’s charge payable for the financial year.
Note: The offset cannot be applied against liability for any other tax.
17 Who is entitled to the charge offset
(1) A parent entity is entitled to a charge offset for a financial year if:
(a) charge is payable by the entity for the financial year; and
(b) at least 8 different news business corporate groups are each a group in relation to which one or more members of the service group have an amount of new eligible expenditure greater than nil for the financial year.
(2) The eligible expenditure of a member of the parent entity’s service group for the financial year includes any amount of expenditure incurred by the member during the financial year as described in:
(a) subsection 18(1) or (2) (about commercial deals); or
(b) section 19 (about arbitrated agreements);
in relation to a news business corporate group.
Note: In working out under subsection 20(1) the amount of the parent entity’s charge offset, this expenditure is known as new eligible expenditure.
(3) The parent entity’s eligible expenditure for the financial year includes any amount described in subsection 20(2) that may be carried forward by the parent entity to the financial year in relation to a news business corporate group.
Note: In working out under subsection 20(1) the amount of the parent entity’s charge offset, this expenditure is known as carried forward eligible expenditure.
18 Expenditure under commercial deals with Australian news media businesses
General—monetary consideration provided to registered news businesses for covered news content
(1) For the purposes of paragraph 17(2)(a), an amount is an amount of expenditure incurred by a member of the parent entity’s service group during the financial year if:
(a) the amount is recognised in accordance with the accounting standards as expenditure incurred by the member during the service group’s 12‑month financial reporting period that ends during the financial year; and
(b) the amount is monetary consideration provided directly to a member of a registered news business corporate group (the news group):
(i) for the production, or to support the production, of covered news content by a registered news business of the news group; or
(ii) in connection with covered news content produced by a registered news business of the news group being made publicly available online by a member of the service group; and
(c) the amount is provided under an agreement with one or more other entities:
(i) each of which is, just before the amount is provided, a member of the news group; and
(ii) none of which is connected with a member of the service group; and
(iii) none of which is an affiliate of a member of the service group; and
(iv) none of which is an entity of which a member of the service group is an affiliate.
Note: Subparagraph (b)(ii) could cover, for example, a payment of a share of advertising revenue relating to the news content being made publicly available online.
Transitional—consideration provided for the benefit of news businesses
(2) For the purposes of paragraph 17(2)(a), if:
(a) a member of the parent entity’s service group provides consideration (whether or not monetary consideration), directly or indirectly, to a member of a news business corporate group (the news group) for the benefit of a news business of the news group; and
(b) the actual cost of the consideration is recognised in accordance with the accounting standards as an amount of expenditure incurred by the member of the service group during the service group’s 12‑month financial reporting period that ends during the financial year; and
(c) the 12‑month financial reporting period also ends before, or includes, the day this Act receives the Royal Assent; and
(d) the consideration is provided under an agreement with one or more other entities:
(i) each of which is, just before the consideration is provided, a member of the news group; and
(ii) none of which is connected with a member of the service group; and
(iii) none of which is an affiliate of a member of the service group; and
(iv) none of which is an entity of which a member of the service group is an affiliate; and
(e) the requirements (if any) prescribed by the rules are met for the consideration;
then treat the member of the service group as incurring expenditure during the financial year equal to the amount worked out under subsection (3).
(3) The amount is the sum of:
(a) if the amount from paragraph (2)(b) (the total spend) consists wholly or partly of an amount (the marketing or advertising portion) relating to marketing or advertising—so much of that portion as does not exceed 40% of the total spend; and
(b) so much of the total spend as is not the marketing or advertising portion.
Note: Subsections (2) and (3) apply separately to each agreement under which the consideration described in subsection (2) is provided.
19 Expenditure under arbitrated agreements with Australian news media businesses
For the purposes of paragraph 17(2)(b), an amount is an amount of expenditure incurred by a member of the parent entity’s service group during the financial year if:
(a) the amount is recognised in accordance with the accounting standards as expenditure incurred by the member during the service group’s 12‑month financial reporting period that ends during the financial year; and
(b) the amount is incurred under a determination made under subsection 52ZX(1) of the Competition and Consumer Act 2010; and
(c) the amount is provided to one or more members of the registered news business corporate group for the registered news business that created the covered news content to which the determination relates.
20 Amount of the charge offset
(1) The amount of the parent entity’s charge offset for the financial year is worked out by:
(a) working out the total new eligible expenditure of the members of the parent entity’s service group for the financial year in relation to each news business corporate group; and
(b) for each of those totals—multiplying the total by whichever of the following percentages that is applicable:
(i) for a news business corporate group consisting only of small or medium business entities for the financial year—200%;
(ii) for other news business corporate groups—150%; and
(c) preparing an adjusted total of the service group’s eligible expenditure for the financial year in relation to each news business corporate group (the news group) by:
(i) if there is a total from paragraph (b) that relates to the news group—adding to that total any amount of carried forward eligible expenditure of the parent entity for the financial year in relation to the news group; or
(ii) if there is no such total from paragraph (b)—counting any amount of carried forward eligible expenditure of the parent entity for the financial year in relation to the news group; and
(d) working out a sum of so much of any combination of the adjusted totals from paragraph (c) as:
(i) does not use so much of a particular adjusted total as exceeds one‑quarter of the amount of charge payable by the parent entity for the financial year; and
(ii) does not exceed that amount of charge.
The sum from paragraph (d) is the amount of the parent entity’s charge offset for the financial year.
Note 1: The amount of charge offset resulting from paragraph (d) takes into account both:
(a) any eligible expenditure for the current financial year (see paragraphs (a) and (b)); and
(b) any eligible expenditure carried forward from an earlier financial year (see paragraph (c)).
Note 2: The parent entity can choose how much of each adjusted total from paragraph (c) is to be combined to produce the sum from paragraph (d).
(2) The parent entity may carry forward to a later financial year, in relation to a particular news business corporate group, so much of the adjusted total from paragraph (1)(c) in relation to the group as is not used under paragraph (1)(d).
Note 1: An amount carried forward under this subsection is carried forward eligible expenditure of the parent entity for a later financial year (see subsection 17(3)).
Note 2: Carried forward eligible expenditure remains available for use under paragraph (1)(d) for a later financial year for which the parent entity is entitled to a charge offset.
Note 3: If the parent entity is not entitled to a charge offset for the current financial year, new eligible expenditure for the current financial year cannot be carried forward.
Part 5—Anti‑avoidance
Division 1—Application and key concepts
21 Simplified outline of this Part
The object of this Part is to deter schemes that give entities benefits by reducing charge or increasing amounts of charge offset.
If the sole or dominant purpose, or principal effect, of a scheme is to give an entity such a benefit, the Commissioner may negate the benefit an entity gets from the scheme by declaring:
(a) how much charge would have been payable; or
(b) how much charge offset would have been available;
if the scheme had not existed.
22 When this Part applies
General rule
(1) This Part operates if:
(a) an entity (the avoider) gets or got a charge benefit from a scheme; and
(b) taking account of the matters described in section 24, it is reasonable to conclude that either:
(i) an entity that (whether alone or with others) entered into or carried out the scheme, or part of the scheme, did so with the sole or dominant purpose of that entity or another entity getting a charge benefit from the scheme; or
(ii) the principal effect of the scheme, or of part of the scheme, is that the avoider gets the charge benefit from the scheme directly or indirectly; and
(c) the scheme:
(i) has been or is entered into on or after 1 January 2025; or
(ii) has been or is carried out or commenced on or after that day (other than a scheme that was entered into before that day).
Territorial application
(2) It does not matter whether the scheme, or any part of the scheme, was entered into or carried out inside or outside Australia.
23 When does an entity get a charge benefit from a scheme?
(1) An entity gets a charge benefit from a scheme if (were this Part to be disregarded):
(a) an amount of charge payable by the parent entity of the entity’s service group is, or could reasonably be expected to be, smaller than it would be apart from the scheme or a part of the scheme; or
(b) an amount of charge offset to which the parent entity of the entity’s service group is entitled is, or could reasonably be expected to be, larger than it would be apart from the scheme or a part of the scheme.
Meaning of scheme
(2) A scheme is:
(a) any arrangement, agreement, understanding, promise or undertaking:
(i) whether it is express or implied; and
(ii) whether or not it is, or is intended to be, enforceable by legal proceedings; or
(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.
Charge benefit can arise even if no economic alternative
(3) An entity can get a charge benefit from a scheme even if the entity or entities that entered into or carried out the scheme, or a part of the scheme, could not have engaged economically in any activities:
(a) of the kind to which this Act applies; and
(b) that would produce an effect equivalent (except in terms of this Act) to the effect of the scheme or part of the scheme;
other than the activities involved in entering into or carrying out the scheme or part of the scheme.
24 Matters to be considered in determining purpose or effect
(1) The following matters are to be taken into account under section 22 in considering an entity’s purpose in entering into or carrying out the scheme from which the avoider got a charge benefit, and the effect of the scheme:
(a) the manner in which the scheme was entered into or carried out;
(b) the form and substance of the scheme, including:
(i) the legal rights and obligations involved in the scheme; and
(ii) the economic and commercial substance of the scheme;
(c) the purpose or object of this Act and any relevant provision of this Act (whether the purpose or object is stated expressly or not);
(d) the timing of the scheme;
(e) the period over which the scheme was entered into and carried out;
(f) the effect that this Act would have in relation to the scheme apart from this Part;
(g) any change in the avoider’s financial position that has resulted, or may reasonably be expected to result, from the scheme;
(h) any change that has resulted, or may reasonably be expected to result, from the scheme in the financial position of an entity (a connected entity) that has or had a connection or dealing with the avoider, whether the connection or dealing is or was of a family, business or other nature;
(i) any other consequence for the avoider or a connected entity of the scheme having been entered into or carried out;
(j) the nature of the connection between the avoider and a connected entity, including the question whether the dealing is or was at arm’s length;
(k) the circumstances surrounding the scheme;
(l) any other relevant circumstances.
(2) Subsection (1) applies in relation to consideration of an entity’s purpose in entering into or carrying out a part of a scheme from which the avoider gets or got a charge benefit, and the effect of part of the scheme, as if the part were itself the scheme from which the avoider gets or got the charge benefit.
Division 2—Commissioner may negate effects of schemes for charge benefits
25 Commissioner may make declaration for purpose of negating avoider’s charge benefits
(1) For the purpose of negating a charge benefit the avoider mentioned in section 22 gets or got from the scheme, the Commissioner may make a declaration stating either or both of the following:
(a) the amount of charge that is (and has been at all times) payable by the following entity for a specified financial year that has ended:
(i) if the avoider is the parent entity of the avoider’s service group—the avoider;
(ii) otherwise—the parent entity of the avoider’s service group;
(b) the amount that is (and has been at all times) the amount of charge offset of the following entity for a specified financial year that has ended:
(i) if the avoider is the parent entity of the avoider’s service group—the avoider;
(ii) otherwise—the parent entity of the avoider’s service group.
(2) The Commissioner must take such action as the Commissioner considers necessary to give effect to a declaration made under this section.
(3) For the purpose of making an assessment of charge, a statement in a declaration under this section has effect according to its terms, despite the provisions of this Act outside of this Part.
26 Commissioner may disregard scheme in making declarations
For the purposes of making a declaration under section 25, the Commissioner may:
(a) treat a particular event that actually happened as not having happened; and
(b) treat a particular event that did not actually happen as having happened and, if appropriate, treat the event as:
(i) having happened at a particular time; and
(ii) having involved particular action by a particular entity; and
(c) treat a particular event that actually happened as:
(i) having happened at a time different from the time it actually happened; or
(ii) having involved particular action by a particular entity (whether or not the event actually involved any action by that entity).
27 One declaration may cover several financial years
To avoid doubt, statements relating to different financial years may be included in a single declaration under section 25.
28 Commissioner must give copy of declaration to entity affected
(1) The Commissioner must give a copy of a declaration under section 25 to:
(a) the avoider; and
(b) the parent entity of the avoider’s service group (if this is not the avoider).
(2) A failure to comply with subsection (1) does not affect the validity of the declaration.
Part 6—Other matters
29 Translation of amounts into Australian currency
(1) For the purposes of this Act, an amount (including an amount used to work out another amount) expressed in a currency other than Australian currency is to be translated into Australian currency using the method in subsection (2) or (3).
Example: If the accounting records and financial reports of an entity are expressed in a foreign currency, some or all of the entity’s gross revenue will need to be translated into Australian currency before the tests in this Act are applied.
Translation in accordance with accounting standards
(2) If an entity wishes to translate into Australian currency an amount that is derived from a financial report that:
(a) uses a method to translate amounts from one currency to another; and
(b) is prepared in accordance with applicable accounting standards; and
(c) is audited in accordance with the Corporations Act 2001 (or a corresponding law of a foreign country);
the entity must translate the amount into Australian currency using that method if this is possible.
Translation using published average exchange rates
(3) Unless subsection (2) applies, an entity must translate amounts into Australian currency using:
(a) an average exchange rate for the period most closely corresponding to the period to which the amount relates; and
(b) either:
(i) the exchange rates published by the Reserve Bank of Australia; or
(ii) if the amount is in a currency for which the Reserve Bank of Australia does not publish an exchange rate—a publicly and commercially available market exchange rate.
30 Review of the operation of this Act etc.
(1) The Minister must cause an independent review to be conducted of the operation of this Act and the News Media Bargaining Charge Act 2026.
(2) The review must make provision for public consultation.
(3) The review must commence as soon as practicable after the end of the 3‑year period starting on the commencement of this Act.
(4) The persons who conduct the review must give the Minister a written report of the review within 18 months of the commencement of the review.
(5) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 15 sitting days of that House after the Minister receives the report.
31 Rules
(1) The Minister may, by legislative instrument, make rules prescribing matters:
(a) required or permitted by this Act to be prescribed by the rules; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) To avoid doubt, the rules may not do the following:
(a) create an offence or civil penalty;
(b) provide powers of:
(i) arrest or detention; or
(ii) entry, search or seizure;
(c) impose a tax;
(d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;