The BGA Australia Team, led by Managing Director Michael “Mick” McNeill, prepared an update for clients on the Australian Standards on AI.

Context

  • Prime Minister Anthony Albanese committed to a national artificial intelligence (AI) framework July 15 that seeks to provide investor certainty while addressing community concerns related to job security, planning, energy and copyright issues. The Labor government sees AI and associated infrastructure as vital to addressing low productivity and low growth, but community and union anxiety has risen as households feel cost-of-living pressures.
  • The Australian Standards on AI, which the government intends to legislate early next year, will underpin the national AI framework. The Australian Standards build on previously announced Data Center Expectations that the government views as the “foundation of their social license to operate in Australia.” The AI sector is particularly focused on reforms to copyright laws, while the broader business community is wary of any moves that would give unions power over the rollout of AI in workplaces. Albanese’s announcement was partly motivated by a desire to control the agenda ahead of the July 23-25 Labor Party National Conference.

Significance

  • Albanese announced an Office of AI in the Department of Prime Minister and Cabinet would coordinate the design of new Australian Standards on AI. He said this would provide a consistent regulatory framework for large data centers and AI training and be the first to be legislated by a government worldwide. The government will seek approval from state and territory governments next month and bring the legislation to Parliament early next year. “It is not our goal to try and legislate for every possible eventuality or risk. That only creates the risk of Australia missing out on investment altogether,” Albanese said.
  • The prime minister said the standards would bring previously announced data center expectations into one regulatory framework that would be “consistent and mandatory.” The expectations revolve around environmental and national interest considerations that apply to new or expanded developments within Australia. The government wants to use the regulatory approval process as leverage to ensure alignment with its expectations (see March 23, 2026, update, “Australia Announces Data Center Expectations Amid Energy Crisis”). The standards will include a legal obligation for data centers to underwrite their new power supply, pay their full share of connection costs, reduce power when needed to strengthen the grid and be as water-efficient as possible.
  • Albanese believes the national framework will “enhance [Australia’s] appeal to international investors by delivering greater clarity and speed for approvals.” Albanese said the government was “serious about attracting frontier AI investment to Australia, because we want AI to support and create good jobs, not replace them.” The Albanese government believes it has leverage with those seeking to build AI infrastructure due to Australia’s skilled workers, membership of the Five Eyes intelligence-sharing network (also comprising Canada, New Zealand, the United Kingdom and the United States), stable governance, proximity to growing Asian economies and energy availability. Albanese said the government “will consult closely with industry and our trading partners to design a framework for fast decision-making, better supporting infrastructure and genuine community engagement.”

Implications

  • Copyright reform is a key issue for AI companies looking to invest in Australia. Albanese noted the government’s current consultation on copyright and artist protections where AI training is involved. The government has ruled out a text and data mining exception but is examining whether a new paid collective licensing framework under the Copyright Act should be established for AI or whether to maintain the status quo through a voluntary licensing framework. “Australian writers, musicians, artists and journalists must retain ownership and control of their work. Our laws will spell that out, plain as day,” Albanese said.
  • The Albanese government is trying to balance the needs of business and the demands of Labor-affiliated unions. Unions want a say in AI deployment and government AI procurement, while business is warning that such measures would undermine productivity and reduce competition. AI platforms are seeking procurement opportunities related to the expansion of the federal government’s GovAI artificial intelligence service.The New South Wales Labor government’s Work Health and Safety Amendment (Digital Work Systems) Act 2026 requires employers to manage worker safety risks from AI, algorithms and automation. The act gives unions power to request reasonable assistance to access and inspect digital work systems relevant to a suspected contravention of the act.

If you have any questions or comments, please reach out to BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com. 

Best regards,
The Australia Team

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