In the face of rising cyber threats and high-profile data breaches, the Australian Government is cracking down on organisations that fail to take privacy and cybersecurity seriously. A raft of changes to the Privacy Act 1988, along with new cyber-related legislation, means that even small businesses can no longer afford to be complacent.

Here’s what you need to know to stay ahead of the changes — and out of trouble.

1. Tougher Penalties for Privacy Breaches

The stakes just got higher. The maximum penalty for serious or repeated breaches of the Privacy Act has been significantly increased. Organisations can now be hit with penalties up to:

• $50 million, or
• Three times the value of any benefit obtained through the misuse of information, or
• 30% of the company’s adjusted turnover (whichever is greater).

This is a massive shift aimed at making businesses sit up and take privacy obligations seriously.

2. No More Hiding Behind the Small Business Exemption

Previously, businesses with an annual turnover under $3 million were exempt from the Privacy Act. That exemption is set to go. Once removed, thousands of small businesses will need to comply with data protection obligations for the first time.

If you're running a small business, now is the time to prepare.

3. More Information Now Counts as “Personal Information”

The definition of “personal information” has been expanded. Now, any information that could reasonably identify an individual — directly or indirectly — is covered. This includes metadata, behavioural data, and potentially even inferred data.

That means more of the data you collect is now subject to strict rules about handling, storage, and disclosure.

4. Mandatory Reporting of Data Breaches

If you experience a data breach that is likely to cause serious harm, you are required to:

• Notify the Office of the Australian Information Commissioner (OAIC), and
• Inform the individuals affected as soon as possible.

Ignoring or delaying these steps can trigger heavy penalties and damage your reputation.

5. Individuals Can Now Sue for Serious Privacy Invasions

A new statutory tort allows individuals to take direct legal action against organisations for serious invasions of privacy. This opens the door to lawsuits, even from a single affected customer or employee.

If you needed a reason to tighten up your privacy policies — this is it.

6. Reasonable Steps to Prevent Cyber Attacks Are Now Expected

With cyber attacks on the rise, businesses are expected to take proactive, reasonable steps to prevent data breaches. This includes:

• Having secure IT systems and software,
• Conducting regular risk assessments,
• Training staff on cybersecurity best practices,
• Ensuring third-party providers are also compliant.

Failing to do so isn’t just a security issue — it’s now a legal risk.

What Should Your Business Do Now?

• Review and update your privacy policy
• Conduct a privacy and cybersecurity audit
• Train your team
• Ensure you have a data breach response plan in place
• Stay informed about ongoing legislative updates

Final Thoughts: Privacy and data security are no longer just "IT problems." They’re legal and reputational issues that impact every level of your organisation. With the changes to the Privacy Act and broader cybersecurity laws, now is the time to review your obligations, get ahead of compliance, and protect your business and your clients.

Need help navigating the changes? Our team can help guide you through a privacy health check and develop policies that meet the new requirements.

🔐 Free Resource: Cybersecurity Toolbox Talk for Your Team

With all the changes to privacy and cybersecurity laws, it’s more important than ever to make sure your team understands how to handle sensitive data and avoid common cyber traps.

We’ve created a ready-to-use Cybersecurity Toolbox Talk that you can run as part of your internal training — perfect for team meetings or onboarding.

👉 Click here to download your free Toolbox Talk