Katie Gallagher, the Minister for Government Services, stopped short of naming specific penalties for AI companies that fail to report breaches, telling ABC News Australia that parliament would need to agree on enforcement measures as part of new legislation.

Asked what penalty regime the government was considering for breaches like the one OpenAI failed to properly report, Gallagher said the details would emerge from both the rapid review and the parliamentary inquiry.

Gallagher emphasised that getting cross-party support would be essential to passing the new laws. "We actually need the Parliament to pass those laws, so we need to get support across the board," she said.

The government is aiming to have legislation drafted by the end of the year, though the final timeline remains uncertain pending parliament's involvement in the process.