Parliament has passed legislation enabling broader use of automated decision-making in the welfare system, implementing a change announced in Budget 2025.
The Social Security (Modernisation) Amendment Bill passed its third reading on 29 May 2026. Social Development and Employment Minister Louise Upston announced the changes. The Ministry of Social Development makes millions of decisions annually, many of them straightforward.
The Bill enables automated decision-making where decisions are straightforward and do not require discretion. MSD currently uses automated processes where possible, but the government says there is still manual processing, duplication and delays for clients.
The legislation adds safeguards for automated decision-making, including legislative requirements to manage bias, ensure transparency and maintain appropriate human oversight. The automated decision-making is not generative AI.
The Bill does not impact eligibility settings for welfare assistance.