The Council of Small Business Organisations Australia (COSBOA) has expressed relief that onerous new privacy obligations for small businesses have not been rushed through in the government’s initial tranche of laws.
COSBOA CEO Luke Achterstraat emphasized that small businesses were already diligently handling data with appropriate care and concern. He warned that the rapid introduction of complex and expanding obligations would have jeopardized the viability of small businesses, which are already burdened by a growing list of red tape and regulations.
The current small business exemption in the Privacy Act, which applies to entities with less than $3 million annual turnover, provides a degree of flexibility between small and micro-businesses compared to the expectations placed on large multinational companies. Removing this exemption would have also impacted over 1.1 million sole traders who rely on themselves and do not have internal compliance or legal teams.
“More than half of small businesses surveyed recently said they expected operating conditions to only get worse over the next 12 months. There is never a good time to hoist higher costs onto small businesses, but to do so in this environment would be reckless.”
Mr Achterstraat welcomed the commission of a dedicated cost-benefit modelling report but said more transparency was required.
“The failure of government to release its own taxpayer-funded modelling is disappointing, especially considering the time and effort spent by small business in the process.”
“Small business impact statements must be mandatory, and the unique small business experience must be rigorously considered at the Cabinet table.”
“Ultimately the right decision has been made here however, we look forward to working with government on training and awareness programs that provide practical support to small business. With the right tools, resources and guidance the small business sector can continue to develop its privacy and cyber resilience.”
For more about COSBOA, visit: www.cosboa.org.au
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