Directors in the crosshairs… Is Your Business Ready?

Big changes are coming to Australia’s privacy laws, and businesses need to be ready. The Privacy and Other Legislation Amendment Act 2024 was signed off on 10 December 2024, with many new rules kicking in the next day. More updates, including stricter protections for personal data, are expected by 10 June 2025.

If your business handles customer data, these changes will impact you.

Failing to prepare could mean massive fines and increased scrutiny. Here’s what you need to know and what you should be doing now. 

What’s Changing?

The Privacy Act amendments bring stricter requirements and tougher penalties for businesses that don’t take data protection seriously. Key changes include: 

• Bigger Fines: Businesses that fail to protect customer data could be fined up to $50 million or a percentage of annual turnover. 

• Broader Definition of ‘Personal Information’: More types of data, including technical and inferred information, will now be covered by privacy laws. Opening legal options for individuals to act on their data being leaked. 

• Increased Director Responsibility: Business leaders can be personally accountable for data security failures in some cases. 

• Stronger Data Breach Reporting Rules: If a breach happens, companies must report it faster and follow stricter guidelines. 

• More Consumer Rights: People will have more control over their data, including the right to have it deleted. 

What This Means for Businesses and Directors

These updates mean businesses can’t afford to be reactive when it comes to privacy and cybersecurity. Directors need to take this seriously, data protection is now a leadership responsibility, not just an IT issue. 

What’s at Risk?

• Massive Fines: The financial penalties could be crippling, especially for small and medium businesses (SMBs). 

• Reputational Damage: A data breach can seriously impact customer trust and business credibility. 

• Legal Liability: Business leaders could personally face consequences for failing to comply. 

What You Should Do Now

These changes aren’t fully in place yet, waiting until the last minute could leave your business exposed. Here’s how to get ahead: 

1. Review Your Data Security Policies

Look at how your business collects, stores, and protects personal information. Identify weak spots and fix them now. 

2. Upgrade Your Cybersecurity Measures

Invest in cybersecurity essentials like multi-factor authentication, endpoint protection, and regular user security training. Make sure your team knows how to spot and handle cyber threats. 

3. Update Your Privacy Policies

With broader definitions of personal data and stronger consumer rights, your privacy policies must be crystal clear about how you handle customer information and if AI is going to be using the data.  

4. Prepare for Data Breaches

If a breach happens, you need to act fast. Have a clear incident response plan so your team knows exactly what to do. 

5. Get Leadership Involved

Cybersecurity isn’t just for IT, it’s a business-wide issue. Directors and executives should get up to speed on their new legal responsibilities, staff need to be training on what to spot and how to act, this should come from the top down. Business leaders should put a framework in place to challenge this training. 

What’s Next? 

The Privacy Act changes are all about giving consumers more control and holding businesses accountable. Ignoring these updates isn’t an option. Taking action now will help your business stay compliant, protect its reputation, and avoid huge fines. 

If you’re unsure whether your business is ready, now’s the time to get advice and put a plan in place. Atlantic Digital can help you, we are seeing a big increase in these requests and are excited to help secure your business.