Live: $2.5b Tomago aluminium smelter bailout 'vital', minister says

Australia's largest aluminium smelter, Tomago Aluminium, will receive a significant $2.5 billion bailout package over 10 years from the federal and New South Wales governments. The announcement comes as the plant's owner, Rio Tinto, had previously warned of a potential closure in 2028 due to escalating energy costs. Prime Minister Anthony Albanese and NSW Premier Chris Minns are set to formally announce the deal at the Hunter region facility.

The bailout agreement includes a commitment of $100 million from the smelter's operators towards decarbonisation initiatives and a demand-response program. Crucially, the deal is also expected to facilitate the injection of 3 gigawatts of new electricity generation capacity. Industry Minister Tim Ayres stated that the funding would be accounted for in the budget, reaffirming a past commitment to transform the Australian aluminium industry.

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This will be accounted for in the budget properly. We made it clear when we made a commitment in 2023, I think it was, just casting back, that we would deliver a transformation package for the Australian aluminium industry.

In parallel, the federal government is set to introduce a revised News Bargaining Incentive bill to parliament. This legislation aims to compel major technology companies, such as Google, Microsoft, and Meta, to increase payments to Australian media organizations for their content. The proposed changes include an increased levy of 2.5 percent on digital advertising revenue for platforms that do not strike content deals.

Further amendments to the bill will require platforms to negotiate commercial agreements with at least eight media organizations, up from the previous proposal of six. The cap for each deal has also been raised from 16 to 25 percent of the total levy, addressing concerns raised by media giants like Nine and News Corp. Financial Services Minister Daniel Mulino emphasized that these changes are designed to incentivize platforms to engage with a diverse range of media outlets, ensuring fair compensation for content usage.

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We want to see deals between digital platforms and a diverse range of media organisations to ensure fair recompense for the use of content.