Government’s media reforms stuck in limbo

THE Federal Government’s proposed media reforms are in limbo after rejection of a push from the Nick Xenophon Team for tax subsidies to support public interest journalism.

The trio of Senate crossbenchers is calling for tax write-offs for media outlets with a turnover

$25 million a year.

Under the plan, they would receive a tax offset for the first $2.5 million spent on journalists and producing content, similar to arrangements for research and development write-offs.

Senator Xenophon said the proposal would give a shot in

of

up

to the arm to small and mediumsized outlets and rural newspapers.

The arrangements would only apply to bona fide operations with a minimum floor of $300,000 so it would exclude people operating a blog from their bedroom, Senator Xenophon said.

But the Government said it was worried about the costs.

“The Government doesn’t look at these things with blank chequebooks,” Treasurer Scott Morrison told Sky News.

Communications Minister Mitch Fifield questioned whether it was appropriate for tax subsidies to benefit foreign multinational media organisations.

Senator Xenophon estimated his “fairly modest proposal” could come with a $40-50 million price tag per year.

And he said more journalism jobs equated to personal income tax down the line.

Senator Fifield said the Government had reached inprinciple agreement with the Nick Xenophon Team on four other measures: an Australian Competition and Consumer Commission inquiry into the impact of the digital environment on media; review into the reach of Australian broadcasting services in the Asia-Pacific region; further extension for community television; and enhanced local content in smaller regional markets.