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Newly released documents show officials warned the government that media outlets would soon be requesting bailouts if the Fair Digital News Bargaining Bill was not progressed.
The Bill aims to make platforms like Meta and Google pay for news that appears on their social media channels.
The Broadcasting Minister Melissa Lee has previously opposed it, calling it "another tax."
Now she says she will wait to hear back from the select committee overseeing the Bill in May before deciding whether to proceed.
Melissa Lee declined our request for an interview.
Victoria University media specialist and chair of the Better Public Media lobby group Peter Thompson spoke to Ingrid Hipkiss.