Australia Rejects AI Copyright Exemptions for Training Data

Government Upholds Creator Rights in AI Era

The Australian government has announced it will not introduce exceptions to copyright laws that would allow artificial intelligence (AI) developers to freely use copyrighted material for training their models. The decision, confirmed by Attorney-General Michelle Rowland on Monday, October 27, 2025, underscores the government's commitment to ensuring creators are compensated for their work in the evolving digital landscape.

This move by the Albanese Labor Party government rejects calls from various tech industry players and a proposal outlined in an interim report by the Productivity Commission.

Rejection of Text and Data Mining Exception

The core of the government's announcement is the firm rejection of a 'text and data mining' (TDM) exception. Such an exception would have permitted AI companies to train their models on Australian artists' and creators' work without requiring notice or compensation.

Attorney-General Rowland stated, 'There is a body of work to do around what the copyright environment looks like in the AI world, but we are making it very clear that we will not be entertaining a text and data mining exception.' She further emphasized that this decision is 'fundamental to their right as people who are generating works to ensure that they are fairly remunerated for that and that there are fair terms of use.'

Industry Reactions and Future Steps

The decision has been widely welcomed by Australia's creative industries, including authors, musicians, and artists, who had fiercely opposed the proposed exemptions, viewing them as a threat to their livelihoods and intellectual property.

Conversely, some in the tech sector, including Atlassian founder Scott Farquhar and companies like Google and OpenAI, had advocated for the TDM exception, arguing it would foster AI development and economic growth in Australia.

While ruling out the TDM exception, the government is not dismissing all potential updates to copyright laws. The Copyright and AI Reference Group (CAIRG) is meeting to discuss alternative frameworks. Key areas of discussion include:

• Encouraging fair and legal avenues for using copyrighted material in AI.
• Improving clarity on how existing copyright law applies to AI-generated content.
• Exploring the establishment of a licensing system (either paid collective or voluntary) for content used in AI training.
• Developing mechanisms, such as new small claims forums, to make it easier for creators to enforce their rights against infringement.

Attorney-General Rowland stressed the importance of transparency, suggesting that AI companies should be able to design royalty systems and track content usage to ensure creators are fairly paid. The government aims to strike a balance between fostering technological innovation and safeguarding the rights and compensation of Australian creators.