A little-noticed regulatory shift could have sweeping consequences for millions of Australian websites, with industry experts warning that proposed changes to .com.au eligibility rules may push businesses and organisations offline — even as the government body overseeing the changes urges calm.
Last month, the board of the .au Domain Administrator (auDA) approved "in-principle" recommendations from an independent panel that would fundamentally overhaul the rules governing who can register a domestic web address. The decision has since sparked alarm among domain industry professionals, though some voices are counselling patience until the full details are confirmed.
What Is Actually Changing Under the New .com.au Rules?
Under the current framework, businesses can register a website address that is broadly related to their products, services, or events — even if the domain name doesn't directly match the company's registered name. A bakery, for instance, could register something like applepies.com.au without trading under that exact name.
That flexibility, known as the "close and substantial connection" rule, is set to be scrapped. Under the proposed new rules, registrants would need to demonstrate a much tighter link between their domain name and their official business identity — effectively requiring the web address to reflect their registered company or organisation name.
auDA said in a statement that rule changes have not yet been finalised and that "most" domain name holders are expected to meet the new requirements. The regulator said the independent review's recommendation is designed to "strengthen the connection between a .com.au or .net.au domain name and the domain name holder's official business identity, helping maintain the trust Australians place in .au domain names."
The panel also found the current criteria "can create inconsistency in how the allocation rules are applied, can be seen as unfair to small businesses, and in some instances may result in consumer harm."
Industry Experts Sound the Alarm
Not everyone is convinced the changes will achieve their stated aims. Erhan Karabardak, a domain lawyer and former auDA chair who voted against the recommendation on the divided advisory panel, said the policy "throws the baby out with the bathwater."
"We still don't understand what the justification was," Karabardak said.
He argued that the changes were driven by a desire to crack down on commercial domain investors who accumulate generic web addresses to sell to legitimate businesses — but said the measure will ultimately fail on that front. Savvy investors, he explained, will simply register multi-word business names with the Australian Securities and Investments Commission to work around the new rules, leaving everyday users to bear the burden.
"Whenever a business wants to register a generic name, product, or service, they're going to have to firstly pay for a business name — $47 a year — and then pay for a domain name," Karabardak said. "It's effectively doubling the cost of registering a .com.au or .net.au domain name."
Domain industry experts estimate that "potentially millions" of Australian websites could be affected, and that confidence in the .com.au address space could be undermined if the proposals proceed in their current form.
Who Could Be Worst Affected?
Beyond commercial operators, Karabardak flagged that schools, charities, and small businesses seeking a short-term domain name to promote an event or campaign could find themselves locked out under the tighter eligibility criteria.
He also warned that the added complexity could push registrants away from .com.au entirely, opting instead for the global .com domain, where fewer restrictions apply. That migration, if it occurs at scale, could erode the broader integrity and relevance of Australia's own domain space — the very outcome the policy is meant to prevent.
What Happens Next?
auDA has stressed that the in-principle approval does not represent a final decision, and that the specific eligibility requirements are still being worked through. Some independent domain industry observers have urged restraint, noting that the full implications of the changes won't be clear until the detailed rules are released.
For now, businesses and organisations that rely on .com.au addresses are being advised to monitor developments closely as the regulatory process unfolds — with the ultimate shape of the new rules still very much up in the air.
