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Government outlines plan to address AI impact on workers

Published July 26, 2026 at 9:02 PM UTC

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The Australian government has released a framework to manage the effects of artificial intelligence on the workforce, proposing stronger union bargaining rights and exploring a "time dividend" that could reduce working hours. The plan aims to balance innovation with worker protections as AI adoption accelerates across industries. Under the proposal, unions would gain greater negotiating power over how AI is deployed in workplaces, potentially influencing decisions on automation and job redesign. The time dividend concept suggests that productivity gains from AI could be shared by shortening the work week without cutting pay. The government's approach has drawn attention from business groups and technology firms, who are assessing the implications for competitiveness. The policy also includes investments in retraining programs to help workers transition to new roles. Labor unions have welcomed the focus on bargaining power, but some employers worry about flexibility. The plan is part of a broader strategy to ensure Australia remains at the forefront of AI adoption while safeguarding jobs. Further consultations with industry and labor are expected in the coming months.