Treasurer Josh Frydenberg says a mandatory code will help "level the playing field" by requiring digital platforms such as Google and Facebook to pay news media businesses for the content they produce.
President Donald Trump has issued a dire warning that freedom of speech is "under assault like never before" after being banned from several social media platforms.
Speaking about Democrat efforts to remove him from office following the violent riots at Capitol Hill last week, Mr Trump also said “the 25th Amendment is of zero risk to me, but will come back to haunt Joe Biden and the Biden administration”.
“As the expression goes, be careful what you wish for,” he warned.
“The impeachment hoax is a continuation of the greatest and most vicious witch hunt in the history of our country and is causing tremendous anger and division and pain, far greater than most people will ever understand”.
The president addressed the mob which stormed the Capitol complex on January 6 as Congress moved to certify the election results.
“As I have consistently said throughout my administration, we believe in respecting America’s history and traditions, not tearing them down,” he said.
“We believe in the rule of law, not in violence or rioting.”
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