But the Labor government has not spelled out how it expects Facebook, Instagram, TikTok and others to enforce the restriction.
The prime minister, Anthony Albanese, confirmed the age limit in the latest step of the government's scrutiny on tech platforms, with plans to introduce legislation into parliament this month.
Albanese and the communications minister, Michelle Rowland, have not ruled out the use of biometric scanning for platforms to verify users' ages against a government database, or for all users being subject to age checks, only saying it would be up to tech companies to set their processes.
Social media platforms would need to "demonstrate they are taking reasonable steps to prevent access" for young people, Albanese said.
There would be no penalties for users who manage to access social media under the age of 16, or their parents, but Rowland said there would be penalties for platforms that did not heed the new laws.
"The eSafety commissioner will have responsibility for enforcement and there needs to be enhanced penalties to ensure compliance," she said, saying penalties below $1m (£510,000) in existing legislation were not enough.
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