The Privacy Act is Changing: What It Means for WA SMEs
In late 2024, Australia passed significant Privacy Act reforms, strengthening privacy rights and increasing penalties for breaches. But the real game-changer for small and medium businesses (SMEs) is yet to come: the likely removal of the small business exemption in 2025 or 2026.
Currently, businesses with an annual turnover under $3 million are mostly exempt from the Privacy Act. This could soon end, leaving tens of thousands of SMEs in Western Australia with new compliance obligations — and potential penalties if they fail to act.
Why SMEs Should Prepare Now
Even before the law officially changes, customers and insurers increasingly expect strong data protection practices. A single data breach can destroy trust overnight, especially in smaller communities across WA where reputations spread quickly.
Waiting until the law changes could be costly. It takes time to map data, update processes, and train staff, so early preparation avoids a last-minute scramble.
What the New Obligations Could Include
If the exemption is removed, SMEs will likely need to:
-
Comply with the Australian Privacy Principles (APPs):
Covering data collection, consent, use, storage, and destruction.
-
Maintain a Privacy Policy:
Clearly explaining how data is collected, stored, and shared.
-
Provide Access and Correction Rights:
Customers must be able to access and update their data easily.
-
Report Breaches:
Mandatory notification within set timeframes if personal information is compromised.
A 90-Day Privacy Compliance Starter Plan for SMEs
Here’s a simple roadmap WA SMEs can start following today:
Month 1: Discovery & Planning
-
Identify what personal data you collect (e.g., names, emails, payment details).
-
Map where it’s stored (emails, CRM, shared drives).
-
Review existing privacy policies or create one if none exists.
Month 2: Controls & Training
-
Limit data access to only those who need it.
-
Implement multi-factor authentication (MFA) for cloud platforms.
-
Train staff on data handling and breach response basics.
Month 3: Testing & Reporting
-
Simulate a data breach drill to test response time.
-
Draft a breach notification template for quick action.
-
Review third-party providers for compliance readiness.
Tech Tips: Using Existing Tools to Stay Compliant
Many WA SMEs already use platforms like Microsoft 365 or Google Workspace. These tools often include:
-
Data loss prevention policies
-
Encryption options
-
Access control dashboards
Final Thoughts: Protecting Trust and Staying Ahead
Privacy isn’t just about ticking a compliance box, it’s about protecting customer trust, strengthening your reputation, and future-proofing your business in a digital world where data security expectations are rising extremely fast. The upcoming Privacy Act Reforms are set to change the way small and medium businesses in Western Australia handle personal information.
By acting early, SMEs can avoid the last-minute scramble that often leads to rushed decisions and higher costs. Proactive planning now means:
-
Lower compliance costs by spreading out changes over time
-
Stronger data security practices that protect your customers
-
Competitive advantage as privacy and transparency become key buying factors
At StartCloud, we help small businesses map, secure, and manage their data so they’re ready for whatever Privacy Act Reforms come next. From assessing where sensitive information lives to setting up the right security controls and policies, our goal is to make compliance simple, cost-effective, and future-ready.
If you want to ensure your business stays compliant while building trust with your customers, we’re here to guide you every step of the way.
