Tech billionaire Elon Musk has branded the Australian government “fascists” over proposals to fine social media companies that fail to stop the spread of misinformation online.

Under proposals announced by Australia’s centre-left Labor government, platforms could be fined up to 5 percent of global annual revenue if the allow the spread of content “reasonably verifiable as false, misleading or deceptive and reasonably likely to cause or contribute to serious harm”.

Communications Minister Michelle Rowland announced the legislation on Thursday after a previous draft of the law was scrapped following backlash from media outlets, civil liberties advocates and the country’s human rights watchdog.

“Misinformation and disinformation pose a serious threat to the safety and wellbeing of Australians, as well as to our democracy, society and economy. Doing nothing and allowing this problem to fester is not an option,” Rowland said.

X owner Musk late on Thursday responded to a post about the proposed law with one word: “Fascists”.

Government Services Minister Bill Shorten rejected Musk’s comments, accusing the Tesla CEO of being inconsistent on freedom of speech.

“Elon Musk’s had more positions on free speech than the Kama Sutra. You know, when it’s, in its commercial interests, he is the champion of free speech and when it doesn’t like it, he is, you know, he’s going to shut it all down,” Shorten said in an interview on Nine Network’s Today breakfast show.

Assistant Treasurer Stephen Jones also hit back at Musk, saying the law is a matter of national sovereignty.

“This is crackpot stuff. It really is crackpot stuff,” Jones told the Australian Broadcasting Corporation.

“Publishing deepfake material, publishing child pornography. Livestreaming murder scenes,” Jones added. “I mean, is this what he thinks free speech is all about?”

Musk has clashed with Australian authorities on the topic of free speech before.

In April, X took Australia’s eSafety commissioner to court to challenge an order to remove posts related to a knife attack on a bishop in Sydney.

The case led to a war of words between Musk and Australian officials, with Prime Minister Anthony Albanese labelling the tech founder an “arrogant billionaire”.

The internet watchdog dropped its legal fight in June after an Australian judge declined to extend an order demanding X hide graphic video of the stabbing worldwide, which the platform had refused to do.