The federal government's proposed news bargaining incentive will push companies like Google, Meta and TikTok to strike commercial deals with news organisations to use the publishers' content on their platforms.
The companies will pay a smaller share of their Australian advertising revenues to the government than if they refuse to reach agreements.
Changes to the bill to appease the coalition will amend the reference year to account for an extra year of digital-advertising revenue growth, providing more income to publishers, assistant treasurer Daniel Mulino said.
"The total pool for media will be bigger by that year of growth," Mr Mulino told ABC Radio National Breakfast on Thursday.
More broadly, the reforms would strengthen the national media landscape "from large companies to small ones", he added.
Labor announced a version of the legislation earlier in August following public consultation, before announcing the further changes to secure the support of the coalition.
These include increasing the number of deals tech companies will have to sign to at least eight to offset payments to the government.
Each deal will also be capped at 25 per cent of the total levy to ensure media outlets receive a reasonable cut based on reach and significance in the market.
Australian Associated Press (AAP) has secured a five per cent cut of all revenue collected by the government through the news bargaining incentive.
AAP's chief executive Emma Cowdroy said the funds recognised the organisation's "important role in Australia's media ecosystem".Â
"AAP is the nation's wholesale news provider, supplying hundreds of outlets with factual and objective reporting. Our primary source journalism also surfaces across digital platforms, often without payment," she said.
"This measure acknowledges that the secondary use of AAP's content by digital platforms should be compensated.''
Communications Minister Anika Wells said the government was ensuring journalists got their fair share from digital platforms which benefited from Australian news.
''A diverse, strong and sustainable media sector is an essential part of a robust democracy," Ms Wells said in a statement.
The changes are on top of existing measures including a grant program for small publishers and start-ups, including networking platforms like LinkedIn, and broadening the definition of journalists.
Meta, the owner of Facebook and Instagram, slammed the government's proposed laws in June.
The tech giant labelled it an unfair tax which won't guarantee a diverse and sustainable news sector.
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