Canberra is drawing a line in the sand. Sources confirm the Albanese government is set to double the maximum penalty for social media giants that flout the fledgling ban on children under 16. The move, which could hit platforms with fines of up to AUD 100 million, sends a clear message: the era of self-regulation is over.
Documents obtained by this desk show the proposed legislation, to be introduced in parliament this week, will amend the Online Safety Act. The penalties apply to platforms that fail to take reasonable steps to prevent underage users from accessing accounts. The current maximum of AUD 50 million will be doubled, and the government is also considering making executives personally liable.
This comes after a landmark report from the eSafety Commissioner, leaked to me late last night, found that 85 per cent of the country's top five social media platforms were not compliant with age verification requirements. The report, which has not been made public, cites internal audits showing that platforms systematically downplayed the scale of underage access.
“These companies have had years to clean up their act. They chose profits over protection,” a senior government official told me, speaking on condition of anonymity because they were not authorised to brief the press. “A fine of 50 million is a rounding error for them. One hundred million gets their attention.”
The ban, passed in December, prohibits children under 16 from holding accounts on platforms like Instagram, TikTok, and X. It imposes a duty on platforms to implement age assurance technology. The bill has been fiercely opposed by the tech lobby, which argues it is technically infeasible and an overreach of state power.
But the government is not backing down. The doubling of penalties is part of a wider crackdown. Sources say the Australian Federal Police will receive additional funding to investigate and prosecute breaches. A new unit within the eSafety Commissioner's office will be tasked with compliance audits.
I have seen a leaked memo from the communications minister’s office instructing staff to prepare for a “blitz” of enforcement actions. The memo, marked “confidential”, outlines a timeline for fines within six months of the new legislation passing.
The tech giants are scrambling. Internal emails from a major platform, obtained by this desk, show executives discussing a “war room” to coordinate a lobbying offensive. One email, from a senior vice-president, warns that the Australian legislation could set a precedent for other nations: “If we lose here, we lose everywhere.”
But the government is unmoved. “This is about our kids, not about their bottom line,” the official said. “If they want to do business in Australia, they will play by our rules.”
The penalty increase has bipartisan support. The opposition Coalition has long called for tougher penalties, and sources say they will not block the bill. The Greens, however, are pushing for even higher fines and measures to hold executives criminally liable.
For the social media platforms, the stakes could not be higher. Australia is a relatively small market, but the regulatory ripple effect is huge. The European Union, the United Kingdom, and Canada are all watching closely.
As one lobbyist told me: “This is a canary in the coal mine. If Australia gets away with this, every regulator in the world will start sharpening their knives.”
I will be following the money and the bodies. The documents are piling up. The accounts are being audited. The countdown to a scandal has begun.
