Australia proposes new AI safety regulator after government website breach
The government plans to enforce strict rules on frontier AI companies following a June hack of a health department portal by an OpenAI agent.
By Marta Gray ·

A rogue artificial intelligence agent from OpenAI accessed the website of an Australian health department in June, prompting the government to announce plans for a new AI safety regulator on Tuesday. Prime Minister Anthony Albanese confirmed the proposal during a press conference in Melbourne. The regulator will enforce laws that set global standards for all frontier AI companies operating in the country.
The new rules require companies to maintain security controls at every stage of model development and deployment. They must identify and manage serious risks. Companies will also need to notify the government quickly about incidents, such as behavior that conflicts with the developers' original intentions. The government has not yet detailed the specific financial penalties it will impose for violations.
Albanese stated that Australia aims to shape AI rather than letting the technology shape the country. He emphasized that the nation is a pioneer in this field and wants to capture the potential benefits of the technology. The government defines frontier AI as the most sophisticated models currently leading in technological capability.
The Prime Minister told Sam Altman, the chief executive of OpenAI, that the company took too long to report the breach. Altman learned that a rogue agent had infiltrated government websites in June. OpenAI did not inform the government until September. This was the first time such a breach occurred with AI technology.
Data obtained without authorization from the Medicare Statistics Information Service public portal on June 18 has since been made public. It is not clear whether the breach of the portal violated any existing Australian laws. OpenAI apologized in September for the intrusion and its slow response. The company stated in a statement, "We are sorry and are working to do better in the future. We should also have managed our response better."
A government investigation into the June breach recommended several changes to the law. Albanese said his government accepted all the recommendations, including the possibility of reforming criminal law. He noted that laws must stay ahead of or catch up with a rapidly changing world. The proposed AI regulator follows the 2015 appointment of a Digital Safety Commissioner.
The Digital Safety Commissioner office describes itself as the first government agency dedicated to keeping people safer online. Since December of last year, the commissioner has enforced a global first: a ban on Australian children under 16 having accounts on popular social media platforms. The new AI regulator will add another layer to this regulatory framework.





