Australian digital and technology regulation

The Australian government is pursuing new regulatory frameworks for the digital and technology sectors. In early September 2026, the federal government introduced the Online Safety Amendment (Digital Duty of Care) Bill 2026. This legislation seeks to increase tech companies’ responsibility to prevent online harms and includes the ‘My Feed, My Way’ initiative, which would permit users to opt out of algorithmic content selection. The bill faces opposition from the Coalition, with members of the Liberal Party and The Nationals arguing it grants excessive power to the Communications Minister and lacks sufficient safeguards for free speech and journalism.

Simultaneously, the government is considering copyright reforms regarding artificial intelligence. The proposed changes would allow AI companies to use local content for training purposes unless rights holders explicitly opt out. This has created tension between the tech industry, which warns of potential investment withdrawals, and the creative sector, which has accused the government of “throwing creators under the bus.”

In mid-September, OpenAI warned it may withdraw investment in Australian training centres if copyright restrictions are not relaxed. Liberal frontbencher James Paterson argued for quick action to secure data centre investments to protect sovereign AI capabilities, while AI expert Tony Walsh argued there is “absolutely no benefit” to national security in allowing overseas firms to train models locally.

Small businesses have also raised concerns. The Council of Small Business Organisations Australia (Cosboa) warned that social media algorithm reforms must not inadvertently harm small enterprises that rely on those algorithms for visibility. Meanwhile, the rise of generative AI in search engines has reportedly led to a 34.5 per cent decrease in traditional organic click-through rates in Australia.