The federal government will work with small businesses as they encounter significant data safety obligations for the first time, Minister for Small Business Julie Collins has reaffirmed, using a Cyber Security Awareness Month statement to remind SMEs of major changes in the digital arena.
Small businesses with annual turnover below $3 million are currently exempt from the Privacy Act, and the tough compliance measures imposed on bigger businesses which collect, handle, and store consumer data.
However, Attorney-General Mark Dreyfus last month confirmed that exemption will end, given the considerable volumes of data now held by small businesses and the potentially devastating consequences of a data breach.
In an opinion piece first published by The Daily Telegraph, Collins confirmed small businesses will be given time and support as they adjust to Privacy Act rules.
“Many small businesses don’t have a good sense of what data they hold or the risks involved, but we know that small businesses want to do the right thing when it comes to privacy and data protection,” she said.
“That’s why we will work with the small business sector every step of the way as we transition to the new settings.
“These changes will only be made after extensive consultations with small business and a transition period to ensure small businesses have reasonable time to prepare.”
Small businesses will benefit because of the security requirements needed to adhere to the Privacy Act, she continued.
“By helping small businesses to improve their data security, we are ensuring they are less attractive targets for cyber criminals and helping to protect small businesses and the jobs that they provide in the community.”
Extra security is set to financially benefit small businesses, too, as the average cybercrime attack is estimated to cost small businesses around $39,000.
Separately, Collins said small business input is integral to work on Australia’s overarching cyber security strategy, being led by Home Affairs Minister Clare O’Neil.
“Feedback from small businesses is helping to inform the development of this new strategy and they will be a critical part of its implementation,” she said.
Collins also reiterated the government’s $23.4 million investment in the Cyber Wardens small business education scheme, led by the Council of Small Business Organisations Australia, and the $18.6 million in digital training grants revealed last August.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
