The new rules will require all telecommunications providers to identify, trace and block SMS scams.
They also require providers to publish information to assist their customers to proactively manage and report SMS scams, to share information about scam messages with other mobile providers and report identified scams to authorities.
It takes scammers an average of seven days from the initial theft of personal and account information to commit multiple crimes.
This change will take a step toward protecting Australians, their identity and their money, and disrupt the business model of scammers, the government said in a release.
Providers will face penalties of up to $250,000 for breaching the new laws.
“Most Australians have either received a scam text message, or know someone who has, and know how easy it can be to fall into the trap,” Communications Minister Michelle Rowland said.
“These new rules aim to disrupt scammers’ business models, which will help to protect vulnerable Australians against scammers accessing their bank account, social media and online businesses.”