Australia wants tech giants like Facebook and Google to pay for the content reposted from news outlets.
The social media giant said the proposed law "fundamentally misunderstands the relationship between our platform and publishers".
Australia previously called Facebook's threats of such a ban "misconceived".
The Australian Competition and Consumer Commission (ACCC) says it drew up the new rules to "level the playing field" between the tech giants and publishers.
The Australian government says it will put the legislation to a vote in the coming weeks.