Meta Platforms, which owns Facebook, Instagram and WhatsApp, and Alphabet's Google did not immediately respond to a request seeking comment.
Australia follows in the footsteps of the European Union's Digital Services Act, which has since 2024 required platforms to offer users the option of switching off profiling. However, the rollout had a bumpy start, with regulators complaining that platforms did not make it simple enough for users to opt out.
Social media companies face growing scrutiny around the world over concerns that algorithms have been designed to encourage addictive behaviour, with users drawn into prolonged viewing through recommendations that push them toward similar content.
Platforms, enforcement powers and industry reaction
eSafety will also be granted the power to issue notices requiring Big Tech companies to swiftly remove harmful, nudity-related and illegal content. However, free speech advocates warned the proposed legislation could result in censorship.
"It's not about giving government control. It's about giving people control," Albanese said.
The government will seek feedback from digital platforms, industry bodies, civil society organisations and advocates on the draft legislation, with the bill expected to be introduced to Parliament this year.
Australia proposes user choice over social media feeds
Australia on Tuesday proposed giving social media users the option to select the content they see on their feeds, marking the next step in the government's push to improve online safety, following its world-first social media ban for children.
Under draft laws proposed by the centre-left Labor government, social media platforms will be required to notify users and offer them a choice over their default feed.
Users can choose to opt in to having their default feed include personalised content recommended by an algorithm. Alternatively, they can opt out of algorithmically recommended content and instead see posts only from the friends and creators they choose to follow.
Government says the rules would increase accountability
"This is sensible, pragmatic, practical reform," Prime Minister Anthony Albanese told reporters. "It gives users choice and it will hold the big tech companies responsible for inaction if they don't follow our laws."
Albanese said the "My Feed, My Way" initiative would also require digital platforms to document the measures taken to address identified risks of harm to Australian users and ensure those measures remain effective over time.
Failure to comply could attract penalties of up to A$109.2 million ($79 million), with Australia's internet regulator, eSafety, responsible for compliance and enforcement.
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