Australians woke to empty news feeds on their Facebook pages on Thursday after the social media company blocked all media content in a surprise and dramatic escalation of a dispute with the government over paying for content.

The move was swiftly criticized by news producers, politicians and human rights advocates, particularly as it became clear that official health pages, emergency safety warnings and welfare networks had all been scrubbed from the site along with news.

"Facebook was wrong. Facebook's actions were unnecessary; they were heavy-handed, and they will damage its reputation here in Australia," Treasurer Josh Frydenberg told a televised news conference.