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AI in the Australian workplace

There is no workplace AI statute. The Government's position, confirmed in its 2026 response to the Future of Work inquiry, is that existing Fair Work, work health and safety, privacy and anti-discrimination frameworks already apply to AI at work. That means adverse action rules cover AI-assisted decisions, AI is a WHS hazard to be managed, and a privacy disclosure deadline lands in December 2026.

Fair Work CommissionSafe Work AustraliaOAICAHRCDEWR

Last reviewed October 2026. Every entry links to its official source.

The rules

What applies today

The Government's response to the Future of Work inquiry confirms the settings for workplace AI: adverse action and anti-discrimination protections under the Fair Work Act apply irrespective of the use of AI, consultation obligations cover major workplace change including introducing AI and automated decision-making, workplace surveillance remains largely state-regulated, and WHS laws require managing AI-related psychosocial risks. No standalone workplace AI statute is planned.

Who this affects: All national-system employers.

Latest updates

What changed recently

  1. 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.

    OAIC: new resources on transparency for AI and automated decision-making

  2. The Information Commissioner told the Law Council the OAIC is on the verge of releasing its guidance on the automated decision-making transparency obligation that commences 10 December 2026.

    OAIC: Law Council of Australia address

  3. The Attorney-General released the Privacy Amendment (Personal Data Protection) Bill 2026 exposure draft, with a fair and reasonable test for handling personal information and express coverage of AI-derived information; it does not alter the December 2026 automated decision-making obligation.

    AGD consultation: privacy reform

  4. The Fair Work Commission published its final guidance note on generative AI in Commission cases, commencing 20 October 2026, with disclosure, verification and witness-statement requirements and AI declarations built into forms.

    FWC: use of AI in Commission cases

  5. Parliament appointed a Joint Select Committee on Artificial Intelligence to examine workforce and skills implications, job creation and displacement, and the quality and security of jobs, reporting by 30 November 2026.

    Parliament of Australia: Joint Select Committee on AI

  6. Safe Work Australia published its first dedicated AI and digital technologies guidance, confirming employers must apply the standard WHS risk-management process and consult workers when introducing AI.

    SWA news

  7. The Government's AI consumer safety priorities included AI safety in the workplace through the tripartite AI Workplace and Employment Forum, alongside a second tranche of privacy reform.

    AI consumer safety priorities

  8. The OAIC opened consultation on guidance for the automated decision-making transparency obligation commencing 10 December 2026. Employers using AI in hiring or people management should watch for the final guidance.

    OAIC ADM consultation

  9. The Fair Work Commission published an exposure draft of its generative AI guidance note after an unprecedented AI-driven surge in lodgements, with disclosure and verification requirements for AI-prepared documents.

    FWC President's statement (PDF)

  10. The Government responded to the Future of Work inquiry, confirming that existing Fair Work, WHS, privacy and anti-discrimination frameworks apply to workplace AI rather than a standalone workplace AI statute.

    Government response (DEWR PDF)

Getting ready

Compliance checklist

  • Keep a human accountable for hiring and dismissal decisions. Adverse action and anti-discrimination protections apply to AI-assisted decisions exactly as to human ones. See the rule

  • Treat AI introduction as a WHS issue: consult workers and identify psychosocial hazards like algorithmic pacing, excessive monitoring and low job control. See the rule

  • Update your privacy policy before 10 December 2026 to disclose the personal information used in, and kinds of decisions made by, automated systems. See the rule

  • Do not over-rely on the employee records exemption: it does not cover candidate data or third-party recruitment and HR AI vendors. See the rule

  • Audit AI hiring tools for bias against protected attributes and give candidates a way to challenge outcomes. See the rule

  • Meet consultation obligations for major workplace change involving AI or automated decision-making under awards and enterprise agreements. See the rule

Straight answers

Questions people ask

Is there a law about AI in the workplace in Australia?

No standalone statute. The Government's 2026 response to the Future of Work inquiry confirmed that existing Fair Work, work health and safety, privacy and anti-discrimination frameworks apply to AI at work. Adverse action and anti-discrimination protections cover AI-assisted decisions, consultation obligations cover introducing AI, and WHS duties require managing AI-related psychosocial risks. NSW has gone further with the Work Health and Safety Amendment (Digital Work Systems) Act 2026, whose main provisions are yet to commence.

Can an employer use AI to screen job applicants?

Yes, but a human must remain accountable and anti-discrimination law applies to the outcome exactly as it would to a human decision. The Australian Human Rights Commission's AI and recruitment checklist covers privacy, robustness, fairness, a candidate's ability to challenge outcomes and human control. From 10 December 2026, employers covered by the Privacy Act must disclose in their privacy policy the personal information used in, and kinds of decisions made by, automated systems.

Does the employee records exemption cover AI hiring tools?

Mostly not. The exemption covers private sector records connected to a current or former employment relationship. The OAIC says it is unlikely to cover contractors providing recruitment or HR services, so third-party AI screening vendors generally must comply with the Australian Privacy Principles in full, and candidate data before employment is not covered either.

Is AI a work health and safety issue?

Yes. Safe Work Australia's July 2026 guidance treats AI as a source of workplace risk to be managed through the standard WHS process in consultation with workers. Identified psychosocial hazards include algorithmic pacing and work intensification, deskilling, low job control and harm from excessive monitoring and surveillance, plus physical risks from robots driven by algorithmic pace pressure.

Do I have to tell staff before introducing AI?

Consultation obligations under awards and enterprise agreements cover major workplace change, which includes introducing AI and automated decision-making. WHS law separately requires consulting workers when identifying and managing AI-related hazards.

What are the Fair Work Commission's new rules on generative AI?

From 20 October 2026, anyone using generative AI to prepare a document for a Commission case must state that it was used and how, check that every fact, case, statute and quote exists and supports the position, and say so. Witness statements must be in the witness's own words and based on their own knowledge. Lawyers and paid agents must hyperlink all cited case law. The final guidance note was published on 24 August 2026.

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