A Privacy Policy is a statement which sets out how your business uses, collects and stores data collected from individuals.
Not all businesses are legal required to have a privacy policy, however some choose to have one despite not being legally required to.
Under the Privacy Act 1988 (Cth), any business with an annual turnover of $3 million dollars or more requires a privacy policy.
Some businesses with an annual turnover of less than $3 million dollars will also require a privacy policy if the business falls under any of the following categories:
- A business that trades in personal information;
- A health service provider;
- A credit reporting body;
- A contractor providing services under a Commonwealth contract;
- A business that is related to a business that is covered by the Privacy Act1988 (Cth);
- A business that is prescribed by the Privacy Regulation 2013;
- An operator of a Residential Tenancy Database;
- A business that conducts Protection Action Ballots;
- A business that has opted-in to being covered by the Privacy Act1988 (Cth);
- An Employee Association registered or recognised under the Fair Work (Registered Organisations) Act 2009;
- A reporting entity for the purposes of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006;
The OAIC website this handy checklist for small businesses to assist in determining whether a business must comply with the Privacy Act.
It is important to note that a Privacy Policy is not the only requirement for businesses who are covered by the Privacy Act. Businesses covered by the Privacy Act must also comply with the Australian Privacy Principles which govern the standards, rights and obligations around:
- the collection, use and disclosure of personal information
- an organisation or agency’s governance and accountability
- integrity and correction of personal information
- the rights of individuals to access their personal information
Even if the Privacy Act does not apply to your business, a Privacy Policy is a useful tool to inform customers about how you use and store their personal information.
If you require further advice about whether your business is covered by the Privacy Act, or you would like a Privacy Policy prepared for your business, please contact The Small Business Lawyer.
