Draft laws setting up a digital duty of care were introduced by Prime Minister Anthony Albanese on Tuesday.
As part of the measures, social media companies will need to provide tools for people to choose what they see in their online feeds, under a government initiative called My Feed, My Way.
"This is not about giving government control. It's about giving people control. It's about putting choice back into the hands of Australians online," Mr Albanese told reporters in Canberra.
Social media companies will be also required to protect people from harmful content online.
Harmful content will conclude the promotion of eating disorders, misogynistic content, pornography or things that glorify crime.
Companies could face fines of $100 million if they don't enact the duty of care.
Communications Minister Anika Wells said the duty of care would build on the world-leading ban on social media for under-16s.
"The digital duty of care is not about controlling adults online. It is about giving adults a choice," she said.
"Tech companies can still move fast, but they will no longer be allowed to break things because online harms have real-world consequences.
"There is a global reckoning coming for big tech."
It follows the government looking to pursue stronger penalties for social media companies as part of measures to bolster the under-16s ban.
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