3 December 2025

Mandatory AI guardrails put 'on hold' with the release of national plan

| By Chris Johnson
Join the conversation
1
Industry Minister Tim Ayers

Industry Minister Tim Ayers: The National AI Plan is designed to regulate and encourage the development and rollout of artificial intelligence. Photo Tim Ayers.

Labor has dumped plans for 10 mandatory guardrails intended to govern the further development and uptake of artificial intelligence in Australia.

Releasing its National AI Plan on Tuesday (2 November), the Federal Government has given business what it wants by pausing work on the guardrails former industry minister Ed Husic had flagged.

But it also appears to be somewhat catering to the union demands that workers be central to the rollout of AI.

More than a year ago, Mr Husic talked up the mandatory guardrails that would have required AI developers to adhere to a regime of risk-management plans, test systems, complaint mechanisms and third-party assessments.

The business sector – particularly big tech companies – had raised concerns about the guardrails, and earlier this year, the Productivity Commission even suggested they be put on hold.

With Mr Husic now removed from the industry portfolio and from the government’s front bench, those guardrails are nowhere in sight.

Nor is the mooted standalone AI Act the guardrails were meant to operate under.

Instead, the government has opted for a gentler approach to regulating the new technology, despite rising community distrust over the fast and all-consuming uptake of AI.

READ ALSO Jobs-for-mates report slams ‘shameless’ appointments that ‘bring governments into disrepute’

Industry Minister Tim Ayres said the government has put the guardrails on hold for now and would instead use existing legal frameworks to regulate AI in the short term while decisions are made about the future of mandatory guardrails.

“The National AI Plan is about making sure technology serves Australians, not the other way around,” he said.

“This plan is focused on capturing the economic opportunities of AI, sharing the benefits broadly, and keeping Australians safe as technology evolves.

“AI will help close gaps in essential services, improve education and employment outcomes and create well-paid jobs in future industries.

“Guided by the plan, the government will ensure that AI delivers real and tangible benefits for all Australians.

“As the technology continues to evolve, we will continue to refine and strengthen this plan to seize new opportunities and act decisively to keep Australians safe.”

The plan is supported by a $29.9 million commitment to establish an AI Safety Institute early next year to monitor and respond to risks, and support government agencies and regulators.

The National AI Plan has three goals: capturing opportunities, including attracting investment in Australia’s digital and physical infrastructure; spreading the benefits of AI by improving public services, supporting AI adoption and building skills across the economy; and keeping Australians safe.

READ ALSO Leigh outlines plan to crack down on subscription traps and other consumer tricks

ACTU assistant secretary Joseph Mitchell said an AI Safety Institute will play an essential role in holding tech companies accountable for the products they develop.

“The Albanese Government’s National AI Plan has workers’ rights at its heart, and this is vital,” Mr Mitchell said.

“Unions welcome the Government’s commitments to ensuring our workplace laws are fit for purpose in the AI age, that meaningful consultation with workers takes place over the introduction of AI, and employers back their workers in by providing training and skills development.

“Workers aren’t afraid of AI but are rightly sceptical about letting it go unchecked, especially when the technology has already been used by big business to undermine wages, conditions and to wipe out jobs.”

The Coalition, however, has described the AI plan as an early Christmas present for the unions.

Deputy Opposition Leader Ted O’Brien said the plan, which was “written by unions, for unions”, is “incomplete and incoherent” and contains “serious defects”.

He said there is no energy plan to power AI, no national regulatory gap analysis, and no Privacy Act reforms.

Shadow industry minister Alex Hawke said the only positive thing in the plan was the omission of an AI Act.

“While the Coalition is pleased to see the government reject an AI Act, Labor’s plan fails to fully embrace the likely economic benefits of AI,” Mr Hawke said.

“Labor’s plan is an early Christmas present for the unions. It lays the groundwork for more union interference in Australian workplaces.”

The Greens have suggested it was the business sector, rather than the unions, who wrote the plan.

Justice spokesperson David Shoebridge described the National AI Plan as a “toothless tiger” that “betrays us all” by abandoning AI guardrails under the guise of a delay.

Senator Shoebridge said Labor had chosen corporate profits over community rights.

“It really tells you who writes the rules here,” he said.

“Ruling out standalone AI legislation shows this government fundamentally doesn’t understand the technology they’re trying to regulate.”

Free Daily Digest

Want the best Canberra news delivered daily? We package the most-read Canberra stories and send them to your inbox. Sign-up now for trusted local news that will never be behind a paywall.
Loading
By submitting your email address you are agreeing to Region Group's terms and conditions and privacy policy.

Join the conversation

1
All Comments
  • All Comments
  • Website Comments
LatestOldest

This is a pathetic response from Labor.

Daily Digest

Want the best Canberra news delivered daily? Every day we package the most popular Region Canberra stories and send them straight to your inbox. Sign-up now for trusted local news that will never be behind a paywall.

By submitting your email address you are agreeing to Region Group's terms and conditions and privacy policy.