The Cost of the U16 Social Media Ban for Australians
The U16 Social Media Ban has been sold as a simple safeguard. But behind the headlines, it comes with a hefty bill — paid not just in money, but in privacy, bureaucracy and lost opportunity.
The Financial Cost
This law doesn’t come cheap. Even before the system was built, the Government spent $6.5 million running its Age Assurance Technology Trial in 2024–25. That trial confirmed what many already knew: there’s no safe or reliable way to enforce these rules. Yet the rollout continues.
On top of that, the Office of Impact Analysis estimates the ban will create an ongoing regulatory burden of $6.69 million per year over the next decade. These costs won’t be absorbed by Big Tech. They’ll be passed straight on to Australians through higher subscription fees, fewer free services, and reduced platform choice.
And the penalties for non-compliance are eye-watering. Platforms that fail to meet the eSafety Commissioner’s demands face fines of up to $49.5 million. Faced with that threat, many smaller or local platforms may simply exit the market — leaving Australians with fewer options and more dependence on the biggest global players.
The Cost to Privacy
Every ID scan, every biometric check, every piece of verification data has to be stored somewhere. The Government’s Age Assurance Technology Trial highlighted the risks:
Verification providers often store data offshore.
ID-based systems create new exposure to hacks and breaches.
Biometric scans are especially vulnerable to misuse or profiling.
Australians will pay not just in dollars, but in privacy. Once your personal data is required just to log in, that data becomes another commodity circulating through governments, platforms and third-party brokers.
👉 Read the full trial report here.
The Bureaucratic Cost
The law relies on industry codes drafted by tech companies and approved by the eSafety Commissioner. If industry can’t deliver codes that meet her standards, she can impose binding regulations instead.
This creates a layer of ongoing compliance costs, reporting obligations and legal risk. Big players can afford it. Smaller Australian platforms, startups, and non-profits may find it impossible — driving them out of the market and stifling local innovation.
The Social Cost
When you add it all together, the hidden price tag becomes clear:
Higher costs for users – passed down through subscriptions and service fees.
Loss of privacy – Australians forced to hand over ID and biometric data.
Fewer local services – compliance costs push out smaller players.
Greater inequality – families without passports, licences or digital literacy risk exclusion from online spaces.
The Government hasn’t published a clear cost-benefit analysis for Australians themselves. But from the evidence we have, the bill is real, significant and long-term.
What Australians Deserve
True child protection doesn’t come with a billion-dollar privacy bill. Australians deserve policies that:
Invest in digital literacy for kids and parents
Hold platforms accountable for harmful content
Provide families with tools and guidance without undermining privacy
The bottom line: the U16 Social Media Ban is expensive, intrusive and ineffective. Australians will pay for it — not just with their wallets, but with their rights.
[Sign our petition] and stand with us against this costly overreach.