In early June, the popular social gaming platform will roll out Roblox Kids and Roblox Select accounts, for those aged between five and eight, and nine and 15, respectively.
The platform's age-check technology, which includes facial checks, will assign users to their designated account.
The announcement comes after Communications Minister Anika Wells met with Roblox in February after reports children were repeatedly being groomed and exposed to suicidal content on the site.
eSafety Commissioner Julie Inman Grant said the company had faced penalties of up to $49.5 million if it failed to comply with Australia's online safety legislation.
Ms Wells said she made it clear to the Roblox founder that she expected an "emphatic response" when it came to concerns raised by parents.
"Australian families want Roblox to be a safe place, and they want it to be a place where their kids can talk to their friends and where they can play the games that they enjoy," she told reporters in Brisbane on Tuesday.
"Overnight, we have just seen how quickly these giants can respond when we hold their feet to the fire."
Roblox Kids users will only be able to access games with maturity ratings of "minimal" or "mild", with the chat function turned off by default.
Roblox Select users will only able to access those with a "moderate" rating, with chat room functions to be gradually introduced with safeguards, allowing them to chat with family and friends or those that are a similar age.
"While no system is perfect, these age-adaptive accounts are designed to help remove the guesswork for parents and help align users' experiences with their age," Roblox chief safety officer Matt Kaufman said.
All games will undergo a review process before being seen by kids or teens, including the platform undertaking real-time evaluation of users aged 16 and over playing games first to see how they are played.
Parental controls are also being expanded on the site, allowing parents to block specific games and manage chats until their child turns 16.
Roblox will also start transitioning to the Australian Classification Board to assign content ratings for games later in 2026, in a bid to help families identify age-appropriate content.
The online game platform is not explicitly included in the government's social media ban for under-16s that began in December, despite its popularity among Australian children.
Under the laws, platforms can be fined by the eSafety Commissioner for non-compliance.
Ms Wells said Roblox would be monitored to ensure the changes took place.
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