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Home Government & Policy

National AI Plan lands with a safety institute

Tom Mercer by Tom Mercer
June 18, 2026
in Government & Policy
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Photo: Warren Griffiths / Pexels

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The federal government has released its National AI Plan, the clearest statement yet of how Canberra intends to grow an AI-enabled economy while managing the risks, according to the Department of Industry, Science and Resources.

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The plan is framed around three objectives: capturing opportunity through digital and physical infrastructure; spreading the benefits through workforce and education programs; and keeping Australians safe through legal and ethical frameworks. It is backed by a $29.9m commitment to establish an AI Safety Institute to monitor, test and share information on AI capabilities and harms.

Notably, the government has chosen not to introduce mandatory guardrails for high-risk AI. Instead it will build on existing laws, arguing established frameworks remain the foundation for addressing AI-related risks.

Why it matters

That decision is the plan’s most contested feature. Industry welcomed the lighter touch; some legal and safety experts warned it leaves gaps, describing the plan as big on ambition but light on detail.

For Australian businesses, the practical signal is that AI adoption is being encouraged, not slowed — with the Safety Institute positioned as a watchdog rather than a gatekeeper.

The harder work is workforce uplift. A plan that promises to spread the benefits will be judged on whether ordinary workers gain the skills to use AI, or whether the gains pool among those who already have them.

Sources: Department of Industry, Science and Resources; SBS News

Tags: AI policyAI Safety InstituteCanberrafederal governmentregulation
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Tom Mercer

Tom Mercer

Tom covers enterprise AI adoption, government and policy for FluentSea.

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