My Feed, My Way: Why Australia's new algorithm opt-out could harm small businesses

I recently joined SBS Arabic to talk through one of the more consequential debates on Australia's digital policy agenda right now: the proposed Digital Duty of Care, known as the "My Feed, My Way,” initiative.

The Albanese government wants an opt-out model, while the Greens want opt-in. On the surface, it is about people giving more control over their feed: flip a switch to take back your attention. However, if you look closer at how it actually works, it is slightly more complicated than that, especially if your business depends on organic reach.

Here's what came out of that conversation, and what the algorithm change impact could mean for how Australian businesses get found online.

What is opt-out, and how is it different from opt-in?

Strip away the political framing and the difference between these two models comes down to something every marketer already knows well: that default feed settings win.

• Opt-out (the Labor government's proposal): Algorithmic recommendations stay switched ON by default, so a user has to actively dig into settings to get a purely chronological feed of accounts they follow.
• Opt-in (the Greens' proposal): Recommendations are switched OFF by default. Feeds show only the accounts a person follows, until they choose to turn algorithmic suggestions back on.

Most people never touch their default feed settings, which is the fact that does a lot of the work here. An opt-in model would shrink algorithmic recommendation feeds almost overnight, while an opt-out model would likely see far more modest change, simply because so few users go looking for the toggle.

Content recommendations, unpaid posts and data collection tracking are not the same thing

One assumption that keeps surfacing in this debate is that switching off algorithmic recommendations also switches off ad targeting, or stops platforms collecting your data. However, that's not the case. There are three separate mechanisms that are doing three different jobs here:

1. Content recommendations: unpaid posts surfaced based on engagement history, rather than because you follow the account.
2. Ad targeting: paid placements delivered using demographic and behavioural data.
3. Data collection tracking: the ongoing background tracking (pixels, location, app activity) that feeds both of the above.

In short: turning off your organic feed will not stop Meta or TikTok collecting your data or serving you targeted ads, as those sit behind separate (largely untouched) privacy settings.

Why small business visibility depends on organic discovery

For everyday users, a less algorithmic feed probably means less exposure to the kind of content loops designed to keep them scrolling. For a new café, an independent brand or a growing B2B service provider, the trade-off looks very different. Social media discoverability is, as a lot of small businesses know, the only affordable way to reach people who do not already know they exist. When organic discovery dries up, buyer behaviour shifts from "I saw it and bought it" to "I needed it, so I went and searched for it." Brands with an existing audience will be fine, but businesses still trying to build one lose their cheapest path to small business visibility – and no amount of posting makes up for that on its own.

The demand generation strategy problem

There is a twist in this debate that I haven't seen spoken about much: if organic discovery shrinks while ad targeting stays exactly as it is, the platforms actually come out ahead. Why? Becuase if a business can no longer count on its organic feed to find new customers, that budget has to go somewhere else: straight into paid auctions. Customer acquisition costs (CAC) climb as competition shifts entirely into paid media, while platforms charge for the discovery that used to come free. A demand generation strategy may stop being something that happens partly by accident and becomes something you have to fund and manage on purpose.

Organic reach explained

Organic reach explained simply: it is the number of people who see your content without you paying to put it in front of them. It sounds minor next to a headline policy debate, but it is the mechanism the whole discussion actually turns on. Change the default on the organic feed, and you change who finds a business by accident versus who has to go looking for it. That is exactly why a policy framed around personal wellbeing has such a direct line to marketing budgets.

Is there a dual-stream alternative?

When this comes up on air, the conversation almost always lands on a binary: opt-in versus opt-out. But a more workable answer looks like a dual-stream model:

• Opt-in/opt-out for personal and recommended media: full, low-friction control over algorithmic entertainment feeds and viral content, so people can step away from addictive loops whenever they choose.
• Preserved discovery for local and business content: a separate discovery stream, without the addictive design, switched on by default for local businesses, community organisations and commercial entities. Regulators can protect people from harmful content loops and keep platforms from turning into pay-to-play channels where only big ad budgets get seen. But both depend on treating personal recommendations and commercial discovery separately.

If you are already rethinking how your business gets found as these rules take shape, that is exactly the kind of conversation we have with clients every week. Get in touch and let's talk through what it means for you.

About Mo Works

Mo Works is a full-service digital creative agency based in Melbourne, specialising in marketing, branding, and digital products. We deliver strategies for sustained growth with account-based marketing (ABM), SEO, ads, and social media. If you're looking for a Melbourne digital marketing agency for your B2B business, get in touch today.