A small business is defined under the Privacy Act 1988 (Cth) as one which has an annual turnover of less than 3 million Australian dollars (Section6D(1)). This value is inclusive of income from all sources and does not include assets held, capital gains or the proceeds of capital gains (Office of the Australian Information Commissioner OAIC). There exists a Small Business Exemption within the Mandatory Data Breach Reporting Requirements.
However, some small business must report a data breach event irrespective of their turnover, these include businesses:
1. Providing a health service, or holding any health information, except an employee record; or
2. That disclose personal information about another individual to anyone else for a benefit, service or advantage; or
3. Provide a benefit, service or advantage to collect personal information about another individual from anyone else; or
4. That are contracted service providers for a Commonwealth contract; or
5. That are credit reporting bodies (Section6D(4); OAIC).
In September 2023, the Attorney-General’s Department released the Government Response to the Privacy Act review, in which the Government “agreed in principle” to removing the small business exemption (AGD 2023: 6). If the small business exemption was removed this would mean that the current Mandatory Data Breach Reporting Requirements would be changed to include small businesses.
What constitutes an eligible data breach?
1. Unauthorised access or disclosure to personal information, or a loss of personal information, held by an agency; or
2. That is likely to result in “serious harm” to one or more individuals; or
3. The organisation or agency has not been able to prevent the likely risk of serious harm with remedial action. (OAIC)
You should report a data breach to the OAIC as soon as practicable. However, the maximum amount of time before making a report is 30 days after you believe that you experienced a data breach event. This timeframe is provided for the business to assess the risk of“serious harm” to the individual as a result of the data breach (Section26WH (2)(b)); OAIC)
You may also wish to contact the OAIC enquiries line: 1300 363 992
You must notify the OAIC and any affected individuals of:
1. Your organisation’s name and contact details
2. A description of the data breach
3. Types of information involved
4. Recommendations of response steps an individual should take (OAIC)
IDCARE can offer your business additional support in drafting and preparing data breach notifications and supporting impacted individuals.
Please contact our small business team to discuss your options further.
For additional support or information, contact IDCARE by submitting a Get Help Form or call 1800 595 160 (Aus) or 0800 121 068 (NZ).
Identity Care Australia & New Zealand Ltd (IDCARE) provides identity and cyber security incident response services (the Services) in accordance with the following disclaimer of service:
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