In today’s digital-first business environment, data is one of the most valuable assets an organisation can hold. But with this comes significant responsibility — particularly under Commercial and Corporate Law in Australia. Privacy compliance is no longer just a box to tick; it is a legal obligation that, if neglected, can lead to severe financial penalties and reputational damage.
This guide explains what Australian privacy law entails, how it applies to your business, and what you must do to meet your legal obligations.
The Legal Framework: Privacy Act 1988
The foundation of privacy regulation in Australia is the Privacy Act 1988, administered by the Office of the Australian Information Commissioner (OAIC). The Act sets out the standards, rights, and obligations around the handling of personal information through the Australian Privacy Principles (APPs).
Under the Act, “personal information” means any data that can identify an individual — such as names, addresses, emails, phone numbers, financial details, and even opinions linked to a person. In some cases, individuals may also seek to understand how and when they access evidence collected by police under Australian criminal law.
Your business is likely bound by the Privacy Act if it:
- Has an annual turnover of more than $3 million; or
- Handles sensitive information, such as health records; or
- Provides services under Commonwealth contracts.
Key Australian Privacy Principles (APPs) Businesses Must Follow
Open and Transparent Management of Information – Businesses must clearly explain how they collect, store, and use personal information in a publicly available privacy policy.
Collection of Personal Information – Only collect personal data that is necessary for your operations, and do so lawfully and fairly.
Use and Disclosure – Personal information must only be used for the purpose for which it was collected, unless consent is given or disclosure is required by law.
Data Security – Reasonable steps must be taken to protect information from misuse, loss, and unauthorised access.
Access and Correction Rights – Individuals have the right to access their personal information and request corrections if it is inaccurate.
Why Privacy Compliance Matters for Businesses
From a Commercial and Corporate Law perspective, privacy compliance is not only a regulatory requirement but also a crucial element in maintaining trust with clients and stakeholders.
Non-compliance can result in:
- Civil penalties of up to $2.5 million for serious breaches.
- Mandatory breach notifications to affected individuals and the OAIC.
- Long-term reputational damage.
In recent years, several high-profile Australian businesses have faced public backlash and costly remediation processes following major data breaches.
Business Responsibilities Under Privacy Law
Create a Compliant Privacy Policy
A privacy policy must be easy to understand and regularly updated. It should clearly explain:
- What data is collected.
- How it is used and disclosed.
- The security measures are in place.
- How privacy complaints can be made.
Implement Data Security Measures
This may include encryption, secure password protocols, access restrictions, and regular cybersecurity training.
Provide Staff Training
Employees should understand their obligations when handling personal information and be trained to identify and respond to potential breaches.
Develop a Breach Response Plan
Businesses should have a documented process for responding to data breaches, including notifying affected individuals and the OAIC within required timeframes.
Review Contracts with Third Parties
If personal information is shared with contractors or service providers, contracts should include clear privacy compliance obligations.
Privacy in the Digital Age: Special Considerations
Cloud Storage and Offshore Data Transfers – If personal information is stored on overseas servers, your business must take steps to ensure the foreign provider complies with Australian privacy standards and understands how digital privacy reforms in 2025 impact you.
Marketing and Spam Laws – Under the Spam Act 2003, consent must be obtained before sending marketing communications, and opt-out mechanisms must be provided.
Social Media and Online Tracking – Data collected through cookies or social platforms must be disclosed in your privacy policy, with options for users to control their data.
Steps to Ensure Compliance Today
- Audit your data – Identify what personal information is collected, why it is collected, and how it is stored.
- Update your privacy policy – Ensure it aligns with the APPs and is easily accessible.
- Train your staff – Reduce breach risks through clear internal guidelines and training.
- Implement technical safeguards – Use secure networks, encryption, and up-to-date software.
- Monitor and review – Regularly assess processes to ensure ongoing compliance.
Privacy compliance is not just a legal requirement — it is a business necessity in today’s data-driven economy. By understanding your obligations under Commercial and Corporate Law and implementing strong data protection measures, businesses can protect both their operations and their clients.
At New South Lawyers, we assist businesses with privacy compliance under Commercial and Corporate Law. Whether you are developing a privacy policy, reviewing contracts, or responding to a data breach, our team provides clear, practical legal advice.
Contact New South Lawyers today for a confidential consultation and ensure your business remains compliant.