The Australian government is considering two copyright reform proposals that would allow AI companies to train models on online content by default, shifting the burden to creators to opt out, according to confidential documents leaked and tabled in parliament this week1,4.
The proposals, contained in slides titled "AI on Australian Terms," were prepared by the attorney-general's department as part of consultations with rights-holder groups earlier in September 2026. Independent Senator David Pocock tabled the documents in the Senate on September 169.
Two paths to the same default
Under the first option, AI companies would receive legal permission to use "unprotected" online material for training after making payments to a central body and meeting other conditions. The second option would require AI companies to sign deals with rights-holder organisations and collecting societies, which would then extend access rights to content created by non-members in the same industry. Under both options, creators would need to "digitally protect" their work to opt out of AI training. The documents state that no additional money would be payable to creators beyond deals negotiated to meet the required quota.
The proposals include penalties for ignoring opt-outs, protections for Indigenous Cultural and Intellectual Property, transparency and audit requirements, and a requirement for AI companies to make "best efforts" to avoid pirated material. "Compensation" and "control" are listed among the document's "key principles," alongside "certainty for all stakeholders, including AI companies".
AI executives in Canberra
The leak coincided with meetings between senior AI executives and federal ministers. Anthropic's special international envoy, Jeffrey Bleich, and OpenAI's vice president of global policy, Ann O'Leary, met with ministers earlier in the week8. O'Leary told The Australian that copyright settings were preventing OpenAI from building an AI training centre in Australia10. OpenAI confirmed it was participating in the consultations. The leaked proposals were already known to OpenAI, Anthropic, Google, and Meta, according to an AI industry source who spoke on condition of anonymity6.
A Treasury Freedom of Information document showed Anthropic had been preparing for discussions as early as April, arguing its investment was "contingent" on "clarity" on copyright law. Anthropic has reportedly signed a deal to lease part of a $32 billion data centre hub proposed by Singaporean developer Zerra DC in Queensland's Western Downs, though the facility is yet to receive local council approval. OpenAI last year signed a deal with Australian company NextDC to be the first major customer of a hyperscale AI data centre in Western Sydney.
Political and creative backlash
The proposals drew sharp criticism across the political spectrum. Pocock said the compromise would throw protections for creatives "under the bus" in pursuit of datacentre funding. Greens Senator Sarah Hanson-Young called the suggestions "abhorrent". Shadow attorney-general Michaelia Cash described the proposal as "a text and data mining exception with an opt-out bolted on".
Author Anna Funder said the government had been swayed by "some really false presumptions" put forward by AI companies2. Former chief competition regulator Rod Sims, who pioneered Australia's media bargaining code, warned the proposed rules "heavily favour AI companies and risk leaving content creators without payment".
Deputy Prime Minister Richard Marles said OpenAI had not delivered an ultimatum and called collaboration with frontier companies an "enormous" economic opportunity3. Industry Minister Tim Ayres denied the proposals would reduce copyright protection. A spokesperson for Attorney-General Michelle Rowland said the government would ensure any future changes delivered "meaningful control and fair compensation".
Prime Minister Anthony Albanese is scheduled to travel to the United States on Friday for talks with technology companies and to address the United Nations about Australia's approach to tech regulation.