A private members' bill introduced by federal independent MP Kate Chaney on Monday would force the government to adopt a single framework for automated decision-making.
It would allow humans to overrule computer-decided outcomes and provide better oversight of the tools used, and require people to be notified if automation was used to determine an outcome.
The bill seeks to alter automatic decision-making processes used to determine aged care funding, and disability and unemployment payments.
The government is unlikely to support Ms Chaney's proposal as it works on its own bill to boost safeguards.
"The Attorney-General's Department is continuing to consult widely to ensure that the ADM (automated decision-making) framework is appropriate, effective, and durable," a spokesperson for Attorney-General Michelle Rowland said.
"The Albanese government is committed to ensuring the safe and responsible use of automated decision-making to deliver timely and efficient services for the Australian community."
Ms Chaney has been speaking to Ms Rowland's office about the potential changes for some time.
The department held a series of consultations about automated decision-making in 2024 and early 2025 but has yet to introduce reforms.
Ms Chaney said she did not understand the hold-up.
"This can be done. Here is an example of how it can be done," she said, holding up her bill.
Ms Chaney invoked memories of robodebt, during which at least 450,000 Australians were wrongly pinged as owing the government money based on incorrect computer-generated averaging.
Most automated systems make decisions based partially on information fed to them about individual clients, but also use "average" examples of disabilities or circumstances.
Many of the systems do not have a formal appeals process.
Controversial, sweeping changes to the National Disability Insurance Scheme passed in August will force recipients to rely on an automated process to determine their entitlements.
Independent MP Monique Ryan said relying on averages was a dangerous way to make health and aged care decisions.
"The thing about disability and looking after people in the healthcare system is that there's no such thing as an average patient, and there's no such thing as an average child with a disability," she said.
Council of the Ageing chief executive Patricia Sparrow said Ms Chaney's bill would ensure safeguards kept pace with the rapid take-up of automated processes.
"Governments should not be using automated systems to make important decisions about people today and promising to work out the rules tomorrow," she said.
The bill includes provisions for a public register of automated government systems overseen by the Commonwealth ombudsman.
Automated decision-making was used in at least 23 government agencies, but only four explicitly disclosed it on their websites, the office of the Australian Information Commissioner confirmed in January.
