ACL managing director Lyle Shelton said The Daily Mail is reporting TalkTalk and Sky are now telling all customers they have an unavoidable choice on whether they want access to online pornography.
It's understood ISPs BT and Virgin are set to introduce a similar family-friendly filter within the next two months.
"It's heartening to see such positive action to protect children from harmful images on the internet so soon after British Prime Minister David Cameron rightly elevated the issue in July," he said.
"ACL urges the Abbott Government to take a closer look at the initiative in the UK to safeguard children from inappropriate material on the internet," he said.
Mr Shelton urged the Coalition to re-evaluate its position against internet filtering.
"In the Coalition's response to ACL's election questionnaire it said it would focus on supporting teachers and parents in their work to protect children online. While this is welcome, unfortunately the issue is too big a problem for just parents and teachers to deal with and requires government intervention," he said.
Mr Shelton also welcomed news that Google, Bing and Yahoo have agreed to introduce changes to prevent depraved images and videos from appearing in search results.