18 September 2026
3 min read
#Data & Privacy, #Digital Economy
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Businesses that operate websites, digital platforms or AI-enabled tools may soon face new online safety obligations under the Australian Government’s proposed digital duty of care reforms.
Released this month, the exposure draft of the Online Safety Amendment (Digital Duty of Care) Bill 2026 (Draft Bill) goes beyond regulating social media platforms and would require any business defined as an “online service” to proactively identify and manage online safety risks.
The Draft Bill introduces a statutory digital duty of care that would require individuals responsible for an online service to ensure, so far as reasonably practicable, a safe online environment.
In practice, rather than simply responding to complaints and removing harmful content, providers would need to identify reasonably foreseeable risks and implement and regularly review safeguards.
The reforms are not directed solely at social media companies.
Although the Minister may make exemptions, the Draft Bill defines an “online service” broadly to include social media platforms, hosting services, carriage services, internet search engines, app stores, relevant electronic services (such as those with certain user-to-user messaging functions), some AI-enabled services, services that supply and maintain related equipment (such as phones, laptops and wearable devices), and designated internet services (such as other websites and apps used to access content).
Businesses should look at assessing risks under the proposed regime if their website or platform includes:
The Online Safety Act already applies to many businesses that operate websites. However, until now, the legislation may have had little practical impact outside of social media platforms.
Current legislation focuses on addressing harm after the fact. The emphasis has been on complaints and content removal, such as in relation to cyber-bullying or image-based abuse. The proposed regime requires businesses to take proactive steps to ensure a safe online environment and includes ongoing risk assessment.
Increased focus on design, algorithms and AI
The Draft Bill, if passed, would require online services to go beyond moderating content.
To ensure compliance, businesses may need to review website features, including algorithms, AI tools and recommendations that could contribute to foreseeable harm.
Risk assessments and governance obligations
If the Draft Bill is enacted, providers would need to assess foreseeable online safety risks, implement controls and regularly review their effectiveness. Annual assessments would also generally be required before significant service changes are introduced, and records would need to be kept for six years.
As with privacy and cyber security processes, many businesses may need to implement governance processes to document online safety policies and procedures.
Greater regulatory oversight
Under the proposed changes, the eSafety Commissioner could demand transparency reports and information, investigate compliance and issue remedial directions.
Substantial penalties are also proposed, with breaches of the digital duty of care attracting civil penalties of up to 60,000 penalty units (currently $109.2 million for a company), and additional penalties for other offences.
The proposed digital duty of care doesn’t just impact social media companies. If enacted, the reforms will impact the governance practices of all online services.
Businesses with websites, digital platforms or AI-enabled tools should start identifying online safety risks and ensure that they have the appropriate controls and procedures in place.
Interested parties can submit their feedback on the exposure draft through the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts website until 22 September 2026.
If you have any questions about the proposed legislation or need assistance assessing online safety risks for your website, digital platform or electronic service, please get in touch with us.
Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.
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