The Government has voiced its support for Australian journalism in the wake of Meta's decision to pull out of future news funding rounds under Australia's News Media Bargaining Code.

In a written opinion piece, Assistant Treasurer and Minister for Financial Services, The Hon Stephen Jones MP, described the decision as "deeply disappointing" given the "billions in revenue" Meta rakes in off the back of news content created by Australian publishers.

"Millions of Australians connect on Facebook, sharing experiences with family and friends, transacting with local businesses and engaging with content. Around half of all Australians use social media to get their news. For one in five Australians, social media is their main source," he said in a statement.

"Meta's decision to walk away from its deals with news media companies is a fundamental dereliction of its responsibility to its Australian users."

Jones criticised Meta for undermining a reliable news landscape, warning that its decision could lead to a rise in misinformation, making its platforms less authoritative for users. This, he said, contradicted the company's own Code of Conduct claiming a commitment to 'building responsibly, having a positive impact, keeping people safe, serving everyone and competing and collaborating fairly'.

"Meta's short-sighted move thumbs its nose at communities across Australia who value quality journalism and recognise its value and impact when they scroll through their feeds," said Jones. "Meta should do all it can to incentivise quality, trusted content - it is both in Meta's interests and in the public interest."

Jones also highlighted the potential fall out for local news publishers and journalism jobs.

"We know Australians value quality journalism and recognise its value when they scroll through their feeds. Digital platforms must not undermine that news media businesses that provide a public good to our society."

The News Media Bargaining Code, which passed Parliament in 2021, was created with the intention of correcting the power imbalance between digital platforms and Australian companies. In December, the Government announced plans to strengthen existing laws for the Australian Competition and Consumer Commission to scrutinise digital platforms under the Code.