Australia is set to strengthen oversight of artificial intelligence (AI) in automated government decision-making and enhance privacy protections amid growing concerns about AI's impact on community safety. A new list of AI consumer priorities published by the government on Sunday, July 19th, 2026, promises to "better regulate" AI use in federal agencies such as Centrelink and Services Australia, alongside revisiting personal data protection laws.

Pressure has mounted for the government to ensure human involvement in administering government schemes, especially in social services, while balancing the benefits of emerging technology to improve productivity. In May 2026, Employment Minister Amanda Rishworth announced an overhaul of the unemployment system, affirming that humans would remain involved in the Jobseeker payment process.

This move follows a 2025 Commonwealth Ombudsman report that found nearly a thousand jobseekers had their income support payments unlawfully terminated due to automatic cancellations. The government has also faced scrutiny over automated components in the aged care home support program and a National Disability Insurance Scheme planning tool that generates participant budgets.

The government has identified consumer protections as a priority, specifically addressing retail surveillance pricing—the practice of using data to set individualized prices based on consumer behavior. Delegates, parliamentarians, and union leaders have until Wednesday, July 22nd, 2026, to propose amendments to Labor's AI policy platform before a vote.

The policy emphasizes the need for "transparency, accountability and fairness" to mitigate potential harms caused by AI models. Prime Minister Anthony Albanese has previously stated that workers should acknowledge that "artificial intelligence is happening."

"Change is happening, and they have an interest in shaping that change because if not, then they don't get a say," the government noted.

Sources