On Wednesday (27.11.24), the country's House of Representatives voted 103 to 13 in favour of the landmark bill, meaning it will now go to Senate.
Should the bill get passed, sites such as TikTok, Facebook, Instagram and X could face fines of 50 million Australian dollars ($32m) if they do not comply.
Australia wants to introduce the legislation to reduce the harm social media inflicts on young people.
The country's Prime Minister Anthony Albanese said: "This one is for the mums and dads... They, like me, are worried sick about the safety of our kids online.
"I want Australian families to know that the government has your back."
If the legislation is passed, it would come into effect 12 months later, while there will need to be a review after it has been established.
The government noted the ban wouldn't apply to those who are already on social media, while there will be no exemptions for those under 16 whose parents give them permission.
Social media platforms will be told to prove they are taking reasonable steps to stop children accessing their sites.
Albanese noted that users would not face penalties, while the eSafety Commissioner - Australia's online regulator - will be tasked with enforcing the new rules.
The Australian Child Rights Taskforce hit out at the proposal though, claiming a ban would be "too blunt an instrument".
The organisation sent a letter to the government last month, with over 100 academics and 20 civil society organisations co-signing as they called on the PM to look into "safety standards" for platforms rather than an outright ban.
Reacting, Meta - owner of Facebook, Instagram, Threads and WhatsApp - said: “In the absence of such results, neither industry nor Australians will understand the nature or scale of age assurance required by the bill, nor the impact of such measures on Australians."
Last week, the UK's Secretary of State for Science, Innovation and Technology, Peter Kyle, stated on BBC Radio 4's 'Today' programme that he is considering all options, including a similar prohibition.