NSW legislation could grant union officials access to nearly every digital system businesses use. Industry leaders say the bill needs fundamental changes before Parliament votes.
What’s happening: Ten major business organisations have issued a joint statement warning that NSW legislation would grant union officials digital access to workplace systems including emails, payroll, customer databases and financial records across every business in the state.
Why this matters: The legislation arrives as businesses report compliance has become harder over the past year, with the bill introduced without regulatory impact statements or formal consultation with the small business sector it will affect most.
A coalition of Australia’s peak business organisations has united to oppose NSW Government legislation they say will put sensitive personal data at risk and seriously undermine major projects across the state.
The joint statement, issued by ten industry bodies including the Business Council of Australia, Australian Industry Group and Council of Small Business Organisations Australia, warns the Work Health and Safety Amendment (Digital Work Systems) Bill 2025 would grant union officials access to a wide range of workplace digital systems.
The legislation would apply to every workplace in NSW, from small retailers and hospitality venues to construction sites, housing developments, hospitals, schools, manufacturers, miners and government agencies that hold large volumes of confidential personal data, according to the joint statement.
Matthew Addison, Chair of the Council of Small Business Organisations Australia, described the legislation as “a trojan horse that grants union officials with WHS entry permits unprecedented access to business digital systems, including platforms containing payroll data, customer lists, pricing algorithms, and operational strategies, with penalties for businesses that fail to provide reasonable assistance.”
The bill defines a digital work system broadly as “an algorithm, artificial intelligence, automation or online platform” , potentially capturing almost every piece of software used in modern workplaces.
Business Council of Australia chief executive Bran Black warned that “giving unions open-ended powers to access and inspect workplace digital systems is dangerous and reckless — it puts the privacy of workers at risk and forces businesses to hand over highly sensitive commercial data without appropriate safeguards.”
The NSW Government introduced the bill through Minister for Industrial Relations Sophie Cotsis, who said “through this bill, the government aims to ensure that digital workplace systems help businesses and do not undermine the health and safety of workers.”
Minister Cotsis added that “if a system tracks you, times you, and pushes you beyond safe limits – it’s not innovation, its exploitation.”
The legislation responds to a 2022 parliamentary committee report on technological change and its impact on workers’ psychosocial health. According to Sophie Cotsis’s Second Reading Speech, examples of inspectable items include “code or algorithms, performance metrics, records, data logs, and audit trails generated by digital systems.” Herbert Smith Freehills Kramer
Small business advocates have raised particular concerns about the compliance burden. Addison said compliance obligations within the bill are unclear, as it requires businesses to ensure digital systems don’t create “excessive”, “unreasonable” or “discriminatory” outcomes, yet none of these terms are defined, leaving businesses uncertain about their obligations.
The Council of Small Business Organisations Australia highlighted that the bill was introduced without any regulatory impact statement, cost analysis, or formal consultation with the small business sector, adding to concerns about rushed implementation.
Helen Waldron, Australian Industry Group Head of New South Wales, said “the proposed changes are entirely unnecessary and the unclear obligations they would impose on industry will undoubtedly be a catalyst for workplace disputation.”
Business groups also warned about timing issues. The federal government is currently convening discussions about whether to regulate artificial intelligence implementation at a national level, while Safe Work Australia has been tasked with a best practice review focusing on harmonisation of work health and safety laws.
COSBOA warned that the legislation is being rushed through NSW Parliament before Safe Work Australia finalises national guidance on digital work systems, creating yet another instance of NSW breaking ranks on national workplace regulation, according to the organisation’s statement, urging Parliament to address fundamental concerns about privacy, cybersecurity and the protection of worker and customer data.
Industry groups emphasised that current WHS legislation already requires businesses to manage all workplace risks, including those from digital systems, questioning the need for additional legislation.
The organisations warned that the impact would be particularly severe for housing construction, major infrastructure, energy and resources projects, where complex digital systems are central to operations, with increased risk, uncertainty and delay directly undermining housing supply and investment decisions.
The joint statement concluded that without amendment, the bill would make NSW an outlier and an investment killer.
COSBOA has called for the NSW Government to exempt small businesses with fewer than 50 full time employees and to undertake meaningful consultation before progressing the bill, with businesses reporting that the cumulative regulatory burden can overwhelm enterprises, especially SMEs.
The legislation remains before the NSW Parliament, with industry groups continuing to advocate for amendments that address concerns about data privacy, commercial confidentiality and alignment with national workplace frameworks.
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