In brief
This update highlights important recent developments relating to Artificial Intelligence (AI) regulation and policy in Australia, including:
- The Australian Prime Minister’s keynote speech on AI of 15 July 2026
- The Australian Government’s AI consumer safety priorities released on 20 July 2026
- The appointment of the Joint Select Committee on Artificial Intelligence on 20 August 2026
Areas of Australian law identified for possible AI-specific reform include intellectual property and copyright laws and laws relating to national security, data sovereignty, consumer protection, deepfakes and cyber security.
A course correction in uncharted waters
On 15 July 2026, Australian Prime Minister Anthony Albanese delivered a keynote speech signalling a significant shift in the Australian Government’s approach to AI regulation and policy, followed by further significant developments that provide important insights into the likely future direction of Australia’s AI-related regulatory reforms.
To date, AI regulation in Australia has relied primarily on existing technology-neutral laws and voluntary guidance including the AI Ethics Principles (2019), the Voluntary AI Safety Standard (2024) and voluntary Guidance for AI Adoption (2025) rather than a comprehensive AI Act.
Framed around advancing AI in Australia’s national interest, the Prime Minister’s speech foreshadows a coordinated, standards-led framework intended to impose significant requirements for large data centre and AI infrastructure operators including in relation to energy and water use and promote innovation and productivity, while protecting Australian workers and creators, safeguarding national security and preserving sovereign capability.
Following the Prime Minister’s speech, on 20 July 2026 the Australian Government released a list of AI consumer safety priorities foreshadowing regulatory reform in relation to a digital duty of care, privacy, AI safety in the workplace, consumer protections and a framework for automated decision-making within federal agencies.
In addition, on 20 August 2026 the Joint Select Committee on Artificial Intelligence was appointed by resolution of the House of Representatives and resolution of the Senate to further examine the risks and opportunities arising from AI and to review the adequacy of existing laws and regulatory frameworks, including copyright and intellectual property laws and issues such as national security implications of AI, data sovereignty, consumer protection, deepfakes and cyber security.
These developments make it clear that purpose-built AI regulation in Australia is back on the horizon.
Key AI regulatory and policy directions outlined by the Prime Minister
National AI standards
The Government plans to establish Australian AI standards through a single national framework to ensure consistency in enforcement and implementation. Supporting legislation is expected to be brought before Parliament in early 2027. Although the scope and content remain to be developed, the standards are expected to mandate strict requirements for large data centre operators, enhance intellectual property and artists' rights and guide responsible usage of AI.
This marks a shift from the policy position described in the December 2025 National AI Plan, which favoured voluntary guidance and targeted amendments to existing laws rather than a single comprehensive legislative framework.
Office of AI
The Government will establish a new Office of AI within the Department of the Prime Minister and Cabinet responsible for coordinating the design of Australia’s new AI standards and bringing together AI-related work across government.
National security, online safety and disinformation
The Government will treat AI as a "critical and urgent innovation priority" for defence and national security, while responding to its misuse by extremists and bad actors.
Copyright and protection of Australian content
The Prime Minister signalled potential copyright reforms to enhance protections for Australian artists and media in relation to their works (including to ensure that they retain control and ownership of their works and that their works cannot be used without permission to train AI systems). Consultation continues on whether further legislation is needed to strengthen the rights of Australian creators, and if so in what form. The Prime Minister also continued to rule out introducing a text and data mining exception to Australia’s copyright laws.
Data centres and infrastructure
The Australian AI standards are expected to include significant obligations for data centres and AI infrastructure, imposing mandatory requirements in relation to energy and water use. This includes requiring data centres to underwrite new power supplies including renewable energy and produce a net-positive output to the grid and to minimise water usage and pay for any additional water infrastructure required to support their operations. Large-scale data centres will be encouraged to work flexibly, including by reducing power supply when needed to help stabilise the grid. At the same time the Prime Minister emphasised that uniform and streamlined regulation will be intended to reduce state and local government planning delays and result in faster approvals for data centre construction, to encourage local investment and innovation in AI infrastructure.
Workplace adoption and productivity
The Prime Minister’s speech frames AI as both a productivity tool and a source of job creation. Without specifically addressing the potential threat to employment and job security posed by AI, the Prime Minister has indicated that the Government will consult with employers, workers and unions on workplace adoption, skills development and upskilling in relation to AI.
The Australian Government’s AI consumer safety priorities
On 20 July 2026, the Australian Government released a list of five AI consumer safety priorities highlighting areas where it will look to strengthen consumer protections to support the safe use of AI across Australia. Whilst the list is not exhaustive, it provides insight into the Government’s current AI safety-related regulatory priorities, which include:
- Legislating a digital duty of care that puts the onus on AI companies to build in safety by design and proactively address potential harm
- Progressing a second tranche of privacy reforms to modernise Australia's personal data protection laws to respond to AI-driven services
- Improving AI safety in the workplace
- Reviewing whether existing consumer protections adequately address risks arising from retail surveillance pricing and agentic commerce
- Developing a framework to better regulate automated decision-making by federal agencies
Appointment of the Joint Select Committee on AI
On 20 August 2026 the Joint Select Committee on Artificial Intelligence (“Committee”) was appointed to examine the risks and opportunities arising from AI. The Committee will have a wide remit to review any matters it deems related to AI, with a focus on AI's potential to drive improvements in innovation, productivity and living standards across Australia, barriers to AI adoption, the development of sovereign AI capability, and the workforce and skills impacts of AI.
The Committee will also review the adequacy of existing laws and regulatory frameworks including copyright and intellectual property laws and will examine issues such as the national security implications of AI, data sovereignty, consumer protection, deepfakes and cyber security.
The Committee is required to deliver its report on 30 November 2026.