Government is the one sector where responsible AI is already mandatory. Non-corporate Commonwealth entities operate under a binding DTA policy with accountable officials, public transparency statements and use-case impact assessments, NSW mandates its own assessment framework, and a legal framework for automated decision-making is being developed in response to the Robodebt Royal Commission.
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Last reviewed October 2026. Every entry links to its official source.
The rules
What applies today
The binding whole-of-government policy for AI use in the APS. Mandatory requirements include designated accountable AI officials, public AI transparency statements, a strategic approach to AI adoption, use-case level accountability, internal AI use-case registers, staff training and risk-based AI impact assessments. Version 2.0 replaced the original September 2024 policy and significantly strengthened the requirements.
Who this affects: All non-corporate Commonwealth entities, with limited exceptions. A strong voluntary benchmark for state agencies and government suppliers.
Assistant Minister Andrew Charlton set out the shape of the Australian Standards for AI in a Sydney speech: frontier AI developers will have to demonstrate that serious systems are in place to detect risks and prevent incidents, modelled on banking, aviation and workplace safety supervision rather than prescriptive rules. The standards are due to be finalised by the end of 2026, with legislation planned for 2027.
The Joint Select Committee on Artificial Intelligence held a Sydney hearing at which OpenAI's chief strategy officer appeared over the June 2026 agent breach of a Medicare statistics portal and the notification delay. OpenAI and Anthropic had declined a separate Senate inquiry hearing on 1 October. The committee reports by 30 November 2026.
South Australia's Royal Commission into Artificial Intelligence commenced, with Dr Iain Ross AO as chair alongside Kate Pounder and Professor Christopher Manning. It reports by 1 July 2027.
The OAIC published its final guidance on the automated decision-making transparency obligation: a fact sheet on APP 1.7 to 1.9, a supplementary sheet for agencies, a flowchart and an updated Chapter 1 of the APP Guidelines. Computer program is read broadly, human review does not remove the duty where the program's output is a material input, and there is no grace period after 10 December 2026.
Use of the NSW AI Assessment Framework Platform became mandatory for all new AI use-case registrations and assessments by NSW Government agencies, under Circular DCS-2026-02.
The Prime Minister disclosed that an OpenAI agent had bypassed access controls on a Services Australia Medicare statistics portal on 18 June 2026, with notification reaching the Government 84 days later. An Office of AI taskforce with ASD and the AI Safety Institute is reviewing the incident, and the Government said mandatory, timely AI incident reporting will be part of the Australian Standards for AI, to be introduced by the end of 2026.
The Office of AI in PM&C opened consultation on the Australian Standards for AI, proposing mandatory standards for large data centres and conditions for AI training rather than obligations on organisations deploying AI; submissions close 9 October 2026.
NSW published version 1.1 of its mandatory AI Operational Policy under Circular DCS-2026-02, requiring accountable officials, registration of all AI use cases in the AIAF Platform, referral of high-risk cases to the AI Review Committee and annual attestations.
National Cabinet agreed that nine governments will develop consistent mandatory standards for data centre energy, water and land use, legislated by the Commonwealth in early 2027 to complement state planning processes.
Parliament appointed a Joint Select Committee on Artificial Intelligence whose terms of reference include Commonwealth agencies' AI adoption and the transparency and accountability measures that apply, reporting by 30 November 2026.
The Government established a six-member AI Review Committee providing expert advice on high-risk, sensitive, novel or complex AI use cases across the APS. Agencies remain accountable for their own AI risk management.
The DTA published an agentic AI addendum to the government AI technical standard, with best practice for agencies deploying AI systems that plan and act autonomously, emphasising human oversight and guardrails.
The DTA launched a central register of AI transparency statements. All 94 agencies subject to the transparency standard had met their publishing obligations, with a further 20 publishing voluntarily.
Designate accountable AI officials and assign an accountable officer to every AI use case. See the rule
2
Publish and maintain a public AI transparency statement; it now appears on the DTA's central register. See the rule
3
Maintain an internal register of all in-scope AI use cases. See the rule
4
Complete an AI impact assessment before deploying a use case, and refer residual high-risk or sensitive cases to the AI Review Committee. See the rule
5
Apply the AI technical standard, including the agentic AI addendum where relevant, and the AI procurement checklist when buying AI. See the rule
6
NSW agencies: complete the AI Assessment Framework workbook and refer high or critical-risk systems to the NSW AI Review Committee. See the rule
7
Train staff in AI fundamentals and keep human oversight over decisions that affect people, especially recruitment. See the rule
Straight answers
Questions people ask
Is responsible AI mandatory for Australian government agencies?
Yes, for non-corporate Commonwealth entities. The DTA's Policy for the responsible use of AI in government version 2.0 (effective 15 December 2025) requires designated accountable AI officials, public AI transparency statements, internal AI use-case registers, staff training and risk-based AI impact assessments. NSW mandates its own AI Operational Policy and Assessment Framework under Circular DCS-2026-02.
What is an AI transparency statement?
A public statement each in-scope Commonwealth agency must publish and maintain describing how it uses AI, required under the DTA policy. Statements now appear on the DTA's central register. NSW agencies have a parallel obligation under the NSW AI Operational Policy.
What does the NSW AI Assessment Framework require?
Under Circular DCS-2026-02 (30 July 2026, updated 1 September 2026) every NSW Government agency, state-owned corporation and statutory body must adopt Australia's AI Ethics Principles, appoint a senior executive accountable official, register every AI use case in the AI Assessment Framework Platform, complete the assessment where indicated, refer all high-risk and critical-risk use cases to the NSW AI Review Committee within five business days, and maintain a governance board and assurance function.
How does government buy AI responsibly?
The DTA released AI procurement guidance and a checklist aligned to the Digital Sourcing Lifecycle alongside its impact assessment tool on 2 December 2025. Agencies must complete an AI impact assessment before deploying a use case and apply the AI technical standard, including the agentic AI addendum where relevant. Vendors selling AI into government should expect to evidence alignment with Australia's AI Ethics Principles.
What is happening with automated decision-making law after Robodebt?
In response to Robodebt Royal Commission recommendation 17.1, the Government is developing a consistent legal framework for automated decision-making in government services. Consultation drew more than 40 submissions and a summary was published in August 2025; no draft legislation has been released. The July 2026 consumer safety priorities recommitted to the framework. Separately, the Privacy Act's automated decision-making disclosure commences for APP entities on 10 December 2026.
What are the Australian Standards for AI and the Office of AI?
The Office of AI sits in the Department of the Prime Minister and Cabinet and is running the Australian Standards for AI. National Cabinet agreed on 26 August 2026 that the Commonwealth will legislate nationally consistent mandatory standards for large data centres covering energy, water and land use, with conditions attached to AI training, in early 2027. The consultation paper Getting it right was released on 18 September 2026 with submissions closing 9 October 2026.
Certification against Australia's AI Ethics Principles is independent proof that your business uses AI responsibly, before a client, regulator or tender asks.
