Labor is poised to walk back controversial ministerial powers in new digital safety laws amid demands from the Greens for stronger protections, including the right to seek compensation for algorithmic harms.
The Coalition remains opposed to the federal government's Digital Duty of Care proposal, which is one of three major pieces of legislation due to be introduced to parliament his week, alongside a gas reservation and changes to the taxation of trusts.
The digital laws have a potential pathway through the Senate with the support of the Greens, who have set three "tests" for the bill on private compensation, the scale of fines and addressing the addictive nature of the technology.
The duty would require social media, search engines, AI chatbots and other online platforms to take reasonable steps to reduce foreseeable "harms" for underage Australians and "serious harm" for adults.
Categories of harm were outlined in an exposure draft bill released last month, but there was also a provision for the minister to add further harms through regulation.
The Coalition has been vehemently opposed to the powers, suggesting they would lead to political censorship online.
It is understood the government is now prepared to scrap the ministerial discretion component of the bill before it is introduced later this week.
Sarah Hanson-Young says she is "willing" to work with the government, but wants it to do more. (ABC News: Matt Roberts)
Labor urged to give Australians right to seek compensation for online harms
Greens communications spokeswoman Sarah Hanson-Young said she was "willing" to work with the government to make Australians safer online but "only if they show some grit".
"Australians deserve freedom over what appears on their feeds,"
she said.
Senator Hanson-Young said to "meaningfully" change the behaviour of tech companies, Australians who have been harmed online must be able to take "legal action and seek compensation for damage done".
"Enforcement of the Digital Duty of Care cannot be left to the eSafety Commissioner alone," she said.
"To really put Australians' online safety at the heart of this reform, individuals and the community need to have the right to take on big tech through a private right of action."
Senator Hanson-Young said there must be "serious consequences" for social media companies who breach the duty, arguing the proposed fines of about $100 million were not enough.
"Fines for breaches must be tied to a percentage of global revenue," she said.
A spokeswoman for Communications Minister Anika Wells said the government was "finalising" the bill based on feedback from 225 submissions, 22 roundtable briefings and 60 one-on-one meetings about the proposal.
"The overwhelming message we heard was that Australians want a Digital Duty of Care to protect young people and hold big tech to basic standards, just like every other industry," she said.
Sarah Henderson has accused Labor of seeking to suppress "lawful voices". (ABC: Ian Cutmore)
Speaking at the Conservative Political Action Conference (CPAC) in Brisbane on Sunday, Shadow Communications Minister Sarah Henderson accused Labor of seeking to suppress "lawful voices" under the "masquerade of online safety".
"Protecting children should never become an excuse to give politicians sweeping powers over what Australians can say, read or debate online,"
she said.
Labor has rejected this characterisation of the duty, noting for adults "serious harms" relate to existing criminal offences.
But Senator Henderson and other opponents have seized on comments made by Prime Minister Anthony Albanese last month when he suggested the laws would tackle misinformation and disinformation.
Labor urged to 'abandon' trust changes
The government is also expected to introduce a minimum 30 per cent tax on distributions from discretionary trusts this week, which the Coalition is opposing primarily due to concerns about the impact on small businesses.
A spokesman for Jim Chalmers says the changes are to make the tax system "fairer". (ABC News)
A spokesman for Treasurer Jim Chalmers said the changes were to make the tax system "fairer" and fund income tax cuts for workers.
He said the government had consulted closely with small businesses to get the implementation "right".
"The legislation will include options to limit or completely eliminate restructuring costs, as well as the rollover relief we flagged at budget time," the spokesman said.
Tim Wilson says the government should "abandon" the minimum tax or undertake further consultation. (ABC News: David Sciasci)
But Shadow Treasurer Tim Wilson said the government should "abandon" the minimum tax entirely or at least undertake further consultation.
"Small and family businesses and farmers who use trusts want one thing from this government: certainty, so they can get on with backing themselves, investing and creating jobs," he said.
Mr Wilson said the government "hit rock bottom" last week when it was forced to delay a ban on using credit cards to pay tax bills amid backlash from small businesses.
"Jim Chalmers laid tax landmines right across the economy in his budget, and every time one explodes the prime minister humiliates him into another backdown,"
he said.
On Friday, Mr Chalmers announced the government would cover the cost of the Australian Tax Office absorbing surcharge fees when businesses paid their tax bills with a credit card until June 30, to allow for further consultation.