Australia can fine tech companies $782,500. In other countries, penalties can reach $35 million

The review cites Ireland, the European Union and the United Kingdom – which apply significantly higher sums, or base penalties on a percentage of a company’s revenue – as examples of regulatory regimes that lead the world.

Ireland can impose sanctions of up to €20 million ($32.8 million) or 10 per cent of a technology company’s annual turnover; the EU can deduct 6 per cent of a company’s global turnover; and the UK can issue fines of whatever is greater between 10 per cent of a company’s global annual turnover or £18 million ($34.5 million).

The paper also says Australian penalties may fail to strike a proper balance between types of offences. For example, the maximum penalty for failing to take down illegal pro-terror material is the same as harmful, but not unlawful, cyberbullying content.

“This review offers an opportunity to consider whether Australia’s regulatory framework would benefit from further alignment with other jurisdictions,” it says.

“Australia needs to be responsive to global changes in regulating for a safer digital ecosystem and in how Australians connect and use digital products and services.”

Loading

The review says overseas jurisdictions such as the EU and the UK are also taking more systemic approaches to regulation – focusing on systems and processes, rather than complaints about content – which could inform how Australia responds.

Age verification – which means taking steps to ensure that internet users are who they claim to be, and that they meet the minimum age range to comply with laws and regulations – is also being employed in certain circumstances in the EU, UK and Germany.

Rowland has not committed to the eSafety commissioner’s advice to pilot an age verification program, and previously said it would distract the industry from its existing work developing codes of conduct.

However, the issues paper says the government is investigating how it could work.

“The government is currently scoping work on [an age verification] pilot, including how it would complement the development of [industry] codes. The scoping work is having regard to international and industry developments, and consulting across Australian government departments,” it says.

Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter.