Federal government presents proposed updates to privacy laws accounting for AI, smart tech

Among the key reforms are providing for the right to erasure and enhanced consent standards

Federal government presents proposed updates to privacy laws accounting for AI, smart tech

The federal government has published a consultation paper and draft legislation to update privacy laws in light of new risks presented by AI and smart technology like smart glasses.

The proposed amendments will improve privacy safeguards through key reforms such as a fair and reasonable test, a right to erasure, enhanced consent standards and measures that prevent businesses from using personal information without explicit consent.

The fair and reasonable test provision prohibits companies from obtaining more information than necessary or using information for purposes other than what is expected. The right to erasure provision permits people to request the removal of their personal data from major digital platforms such as social media and search platforms.

The strengthening of consent standards would enable Australians to make informed decisions about information disclosed without masked terms or take-it-or-leave-it conditions. Moreover, consumers’ shopping habits, online interests or location data may no longer be traded without their permission.

The reforms to the privacy laws would also improve regulatory clarity as well as the Office of the Australian Information Commissioner’s efficiency. These changes were informed by feedback obtained through the Privacy Act Review and the 2024 Privacy Act amendments.

“Australians expect their personal information to be protected, not exploited. Yet almost four in five Australians report they have very little or no control over how their personal information is collected or used”, said attorney-general Michelle Rowland in a media release. “Getting Australia’s privacy settings right and building trust in our digital world is good for people and good for business”.

The government noted that the risks from data breaches, identity theft and scams are rising, and information misuse can not only impact vulnerable Australians but also create national security risks.

“As more of our lives move online, these reforms will help strengthen privacy protections, boost accountability, and ensure Australians can embrace technology with greater confidence”, Rowland said. “We have opened public consultation to hear from regulated entities, experts and civil society about the design and implementation of these measures to protect Australians, while supporting innovation”.

The public, businesses, academics and community organisations are among those urged to share their inputs. Feedback may be submitted to the website of the attorney-general’s department consultation hub.

The consultation closes on 18 September.

This week, the government also introduced the digital identity protection service IDLock, which enables Australians to block, unblock and track the use of eligible identity documents through the Document Verification Service. The service will be rolled out nationwide next year and can only be accessed through myGov.