Australian Prime Minister Albanese announced that the government will require artificial intelligence companies to mandatorily report safety violations and is considering amendments to criminal law to address serious misconduct in the AI sector. The move follows a September incident in which an OpenAI AI agent gained unauthorized access to the Australian government's Medicare health insurance system's medical statistics data portal. The breach prompted a dedicated government review, whose recommendations the government has accepted in full. Australia will also establish an AI regulatory body tasked with overseeing safety measures across the entire lifecycle of AI systems, identifying major risks, and conducting independent assessments, with the authority to levy substantial fines on non-compliant AI companies. The mandatory AI safety and security requirements will be incorporated into proposed AI legislation, which is slated for submission to Parliament next year. OpenAI previously said the access was unintentional and that no patient medical records were compromised. The incident has heightened tensions between Australia and U.S. tech companies, though two related firms have already indicated at Australian parliamentary hearings that they are willing to accept legal provisions requiring AI companies to report data breach incidents caused by agents.