WHAT IS THE DEAL:

* The News Bargaining Incentive is a plan to force multibillion-dollar tech companies to compensate news outlets for the journalism they use

* It will apply to platforms such as Google, Meta, and TikTok, while AI platforms are not covered

* Under the changes, digital platforms will have to pay a 2.5 per cent levy on their digital advertising revenue if they do not strike deals with media outlets 

* All revenue raised will be distributed to the news media to support journalism in Australia

* The initiative increases the distribution scheme loading for regional journalists, small to medium publishers, and media in under-represented communities from 10 to 20 per cent 

WHAT'S THE REACTION:

* Previous attempts by the federal government to require big tech to pay for news have resulted in threats to pull platforms from Australia

* Meta, the owner of Facebook and Instagram, has previously refused to renew their deals with media companies after their existing ones expired

WHAT THEY SAID:

 * "The incentive responds to the imbalance in bargaining power between large digital platforms and Australian news publishers. If digital platforms decide to pay the charge instead of making commercial deals, there must be a fit-for-purpose mechanism to return that revenue to Australian journalism." - Communications Minister Anika Wells

* "The media sector has warned that Labor's previous proposals would weaken the incentive for digital platforms to strike fair commercial deals, reduce the funding available for Australian journalism and put further newsroom jobs at risk." - Opposition communications spokeswoman Sarah Henderson