Australia is on the cusp of a significant overhaul of its online safety framework.
The Online Safety Amendment (Digital Duty of Care) Bill 2026, introduced to the House of Representatives on 15 October, proposes a statutory legal obligation on technology companies to prevent foreseeable harm to users.
And its consequences for schools extend well beyond platforms children use at home.
The Australian Youth Digital Index (December 2025) found that four in five young people aged eight to 25 are now using AI. That figure rises to 90% among those aged 14 and over. Chatbots, companion apps, and generative AI tools are woven into students’ daily lives – often without safeguards principals and teachers might reasonably expect.
What the Digital Duty of Care Bill proposes
Rather than relying on existing industry codes and non-binding safety expectations, the bill introduces a single statutory digital duty of care. It would require any person responsible for an online service to ensure a safe online environment, so far as reasonably practicable. Penalties for breaches could reach around $109 million.
The Alannah & Madeline Foundation consulted with more than 800 children, young people, parents and carers. It has urged federal parliament to pass the legislation. Ariana Kurzeme, director of policy & prevention at the Foundation, described the bill as a landmark moment.
“For too long, tech companies have been left to set their own rules, and children and families have borne the consequences,” Kurzeme said. “A clear legal duty, backed by a regulator with real powers and penalties that matter, finally places responsibility with the companies designing and profiting from these services.”
The Foundation is also calling for the bill to be strengthened. It wants children’s best interests to be a primary consideration in platform design. Child impact assessments embedded within mandated risk assessments are among its specific recommendations.
How will the Digital Duty of Care Bill affect AI use in schools?
Kurzeme flagged that clearer coverage of AI services would make the legislation stronger. “We believe the coverage of AI could also be clearer, ensuring we explicitly cover chatbots, companion-style services, AI-initiated conduct, synthetic content, dependence and misuse of children’s images and data,” she said. “Children are already talking to chatbots and using AI in their daily lives – the law should leave no doubt that these services and related harms are covered.”
Australian teachers and parents are already raising concerns that students may be developing unhealthy emotional attachments to AI chatbots. Some children are using AI as a source of mental health information and to help process their feelings.
The social media age restriction legislation that came into effect in December 2025 gave schools stronger language in conversations with students and families. One thing that debate has made clear: reactive digital policies are no longer sufficient.
Steps schools can take before the bill passes
The bill has been referred to a Senate inquiry. Its final form remains uncertain, but education leaders do not need to wait for royal assent to act.
The New South Wales Department of Education has already moved. Its guidelines limit AI tools approved for school use to those meeting safety, cybersecurity, privacy, and pedagogical standards.
Embedding digital safety as a core school capability, not a one-off workshop, is now the expectation. The Digital Duty of Care Bill represents Australia’s clearest commitment yet to making tech companies accountable by design. For principals and school leaders, the question is not whether that shift is coming – it is whether their schools are ready for it.