OpenAI's Medicare attack has exposed Australia's 'tech debt'. Fixing it could bring a big bill for taxpayers

Government agencies will need to fortify their cybersecurity defences to guard against future attacks. Government agencies will need to fortify their cybersecurity defences to guard against future attacks. Home affairs department orders all federal government agencies to conduct review of'legacy technology' amid fallout from AI agent hacks Fri 2 Oct 2026 11.00 EDTLast modified on Fri 2 Oct 2026 11.02 EDT The Australian government faces significant "tech debt" that could bring a big bill for taxpayers after the OpenAI Medicare breach, as government agencies will need to fortify their defences against future attacks by AI agents. This week, the home affairs department ordered all federal government agencies to conduct a "legacy technology stocktake" that requires a plan for each agency to "reduce legacy technology systems" to a level within the agency's risk tolerance and appetite, the direction stated. OpenAI this week revealed an internal agent had gained non-public access to the Services Australia Medicare statistics portal during a training task seeking information on government spending on skin conditions in Victoria.