Mandatory AI guardrails for high-risk AI (in development)
Australian Mandatory Guardrails for High Risk AI Settings — Treasury consultation in 2024/2025.
Who must comply
No business is currently bound by an AI-specific mandatory guardrails law. Developers and deployers of AI systems remain bound by the existing laws that apply to what the system does (for example privacy, consumer protection, workplace, anti-discrimination, online safety and therapeutic goods law).
What triggers it
Status only: a mandatory regime would apply only if the government introduces and Parliament passes legislation. Until then, deploying AI triggers the obligations of whichever existing law governs the activity.
When due
No commencement date. The National AI Plan (2 December 2025) relies on existing laws and targeted reforms; monitor DISR and the AI Safety Institute for any change of position.
Evidence required
AI system inventory and risk register; records showing how privacy, consumer law and sector obligations were assessed for each AI use; human oversight and testing records; alignment with the Guidance for AI Adoption (voluntary).
Max penalty
No AI-specific penalty exists. Penalties arise under the existing law breached by an AI system (for example the Privacy Act 1988 or the Australian Consumer Law).
Who must comply with this? The applicability test by industry, business structure and size.
Summary
In 2024 the Department of Industry, Science and Resources consulted on proposed mandatory guardrails for AI in high-risk settings and published the Voluntary AI Safety Standard. The government's National AI Plan, released on 2 December 2025, did not adopt a standalone AI Act. Its stated approach is to build on existing, largely technology-neutral laws, with each regulator remaining responsible for AI harms in its own domain, supported by a new AI Safety Institute that monitors and tests advanced AI. The plan lists targeted measures instead: enforceable online safety industry codes, criminalising non-consensual deepfake material, clarifying how the Australian Consumer Law applies to AI products, and reviews of copyright, healthcare and medical device software rules. For a business, the practical obligation today is to apply privacy, consumer, workplace, anti-discrimination and sector laws to its AI systems; the National AI Centre's Guidance for AI Adoption is the government's voluntary reference.
Industries
Topics
Related
- CWLTHAutomated decision-making transparency in your privacy policy (APP 1.7–1.9)From 10 December 2026, APP entities that use computer programs to make or substantially assist decisions that significantly affect individuals must say so in their APP privacy policy.
- CWLTHAdopt the Voluntary AI Safety Standard (DISR 2024)10 voluntary guardrails for safe + responsible AI deployment; mandatory regime in development.
Frequently asked questions
- Who must comply with Mandatory AI guardrails for high-risk AI (in development)?
- No business is currently bound by an AI-specific mandatory guardrails law. Developers and deployers of AI systems remain bound by the existing laws that apply to what the system does (for example privacy, consumer protection, workplace, anti-discrimination, online safety and therapeutic goods law).
- What triggers Mandatory AI guardrails for high-risk AI (in development)?
- Status only: a mandatory regime would apply only if the government introduces and Parliament passes legislation. Until then, deploying AI triggers the obligations of whichever existing law governs the activity.
- When is Mandatory AI guardrails for high-risk AI (in development) due?
- No commencement date. The National AI Plan (2 December 2025) relies on existing laws and targeted reforms; monitor DISR and the AI Safety Institute for any change of position.
- What is the maximum penalty for Mandatory AI guardrails for high-risk AI (in development)?
- No AI-specific penalty exists. Penalties arise under the existing law breached by an AI system (for example the Privacy Act 1988 or the Australian Consumer Law).
- What evidence is required for Mandatory AI guardrails for high-risk AI (in development)?
- AI system inventory and risk register; records showing how privacy, consumer law and sector obligations were assessed for each AI use; human oversight and testing records; alignment with the Guidance for AI Adoption (voluntary).
Source: https://www.industry.gov.au/publications/national-ai-plan/keep-australians-safe. Rules Mate is not a law firm. Always verify against the live regulator source before acting.