The Australian government is reportedly moving away from earlier plans to introduce dedicated AI legislation, with lawmakers said to be developing a tailored regulatory approach.

Speaking at the 2025 TechLeaders Summit, Innovation Minister Tim Ayres said the government would take time to examine regulatory options and monitor global developments, aiming for rules that fit Australia’s national interests.

Reports suggest lighter AI rules, relying mainly on existing copyright and privacy laws, are being considered by Ayres’ department.

This reported shift follows internal divisions in Prime Minister Anthony Albanese’s caucus, and a recent Productivity Commission recommendation to treat new AI laws as a “last resort.”

Former industry minister Ed Husic, now a backbencher, has continued to call for a dedicated AI Act, citing the need for a unified legal framework.

Greens Senator David Shoebridge called the move away from specific AI regulation “dangerous,” and urged for more rigorous oversight.

Dave Lemphers, CEO of Australian AI company Maincode, voiced support for a pragmatic regulatory approach that allows early AI adoption while assessing future needs.

🔗 Source: Startup Daily

🧠 Food for thought

1️⃣ Australia chooses middle ground between global AI regulation approaches

Australia’s regulatory pullback positions it between the European Union’s comprehensive approach and the UK’s hands-off strategy.

The EU implemented the world’s first comprehensive AI Act in 2024, creating strict requirements for high-risk AI systems including healthcare and transportation applications, with some AI uses like government social scoring systems completely banned 1.

Meanwhile, the UK adopted a principles-based framework without central AI regulation, instead relying on existing sector regulators to interpret five guiding principles including safety and transparency 2.

Australia’s shift toward using existing laws in areas like copyright and privacy, rather than dedicated AI legislation, mirrors the UK’s sector-based approach but stops short of the EU’s comprehensive regulatory framework.

This positioning reflects the challenge facing governments worldwide in balancing AI innovation with oversight, as different countries test various regulatory models with uncertain long-term effectiveness.

2️⃣ Economic projections appear to influence regulatory restraint