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Australia’s House Passes Bill Extending Safety Duties to AI Chatbots

The proposal covers services used by people under 18 and sets potential penalties of up to A$109.2 million.

A phone sits alone on a green parliamentary bench / TokenPost.ai
A phone sits alone on a green parliamentary bench / TokenPost.ai

Australia’s House of Representatives passed legislation on Oct. 28 that would place artificial intelligence (AI) chatbots under a broad online safety duty, extending protections for users under 18 and setting potential penalties as high as A$109.2 million.

The Online Safety Amendment (Digital Duty of Care) Bill 2026 would require covered online services, including AI chatbots, to protect young people from harmful material, conduct and product features. The framework sets a general safety obligation rather than a separate ban on chatbots that simulate emotional intimacy. Services would need to account for safety in product design and maintain systems to protect young users. Noncompliance could draw penalties of up to A$109.2 million.

The proposal is separate from Australia’s under-16 social media restriction, which has prompted planned lawsuits against five platforms. In June, independent MP Kate Chaney asked whether that age limit should extend to chatbots designed to simulate emotional intimacy. Communications Minister Anika Wells said chatbots were not social media and described the digital duty of care as a separate policy approach.

Children’s use of AI tools forms part of the debate. A 2026 survey conducted Feb. 2 to March 4 among 1,950 Australian children ages 10 to 17 found that 78% had used an AI assistant and 8% had used an AI companion. Among children who had used either, 54% said they used the tools for personal or social reasons, while 20% reported potentially inappropriate or harmful interactions. Assistants are generally task-oriented, while companions are designed around connection, friendship or emotional support. Boundaries between the categories are blurring.

Prime Minister Anthony Albanese said stories of people identifying a chatbot as their best friend should be “a huge wake up call for every member of this Parliament.”

House approval advances the proposal but does not complete the legislative process. The bill must proceed through Senate review and receive royal assent before its duty takes effect. The duty would start after a 12-month transition from royal assent. The Senate Selection of Bills Committee referred the legislation to the Environment and Communications Legislation Committee, which is due to report by Nov. 20.

Riza Dagoc

Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.

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