What did the Government decide?
On 2 December 2025 the Federal Government released its National AI Plan. According to ABC News, it paused the mandatory guardrails for high-risk AI that had been proposed, and decided not to pursue a standalone AI Act. It says it will rely on existing, largely technology-neutral laws and on regulators' existing expertise.
What else is in the plan?
ABC reports a $30 million AI Safety Institute, starting the following year, to monitor AI development and advise industry, agencies and ministers on gaps in the law. It also reports planned work on consumer protection rules, copyright, AI in health care, and AI in workplaces.
What does that mean for a business?
Our reading: the absence of an AI Act does not mean AI use is unregulated. The laws you already follow still apply when you use AI, including privacy law, consumer law on what you claim, and the rules of your own profession. For example, a misleading claim is just as misleading when an AI tool wrote it. See our article on reviews and misleading claims.
Who disagrees?
ABC reports that critics, including a former industry minister and a Greens senator, wanted a standalone Act. It is a policy choice, not a settled debate, and it could change.
What should you do?
- Treat your existing obligations as the standard for anything AI helps you publish.
- Keep a record of the AI tools you use and who approves their output. See the six practices.
- Watch for changes. The plan says the Government will act if needed.
What does this article not tell you?
- We read a news report of the plan, not the plan itself.
- It is not legal advice, and it does not say which laws apply to your business.
- Policy can change after 2 December 2025.
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Sources
- AI to be managed through existing laws under national plan · ABC News, 2 December 2025. News report, read by us on 30 September 2026.
We keep what a source says separate from our reading of it. If a source is from another country or a different date, we say so. We are not giving advice, and nothing here is a promise of rankings, citations or sales.