December 2026 Privacy Act: What Every Australian Business Needs to Know
The Privacy Act amendments take effect December 10 2026. If your business uses AI, here is what changes and what you need to do now.
2026-06-19 · 5 min read
On December 10 2026, the Privacy Act amendments take effect across Australia. If your business uses AI in any decision that affects customers, clients, or staff, you have new obligations. Non-compliance penalties reach up to 50 million dollars.
Here is what changes. Every organisation using AI to process personal data must disclose it in their privacy policy. If AI is involved in decisions that affect people, you need to be able to explain how that decision was made. Not in technical terms, in plain language that a customer could understand.
ASIC has already flagged this in REP 798. Licensees are adopting AI faster than they are updating governance. The regulator is watching.
For most businesses I work with, the gap is not intent. They want to do the right thing. The gap is visibility. They do not actually know which AI tools their teams are using, where client data is going, or whether their current privacy policy covers what is happening in practice.
This is what I cover in every AI readiness workshop. Before we talk about tools or capabilities, we map what is actually happening. Which tools are in use? Where does data move? Who has access? Can you explain any AI-assisted decision if a client asks?
The five questions every business should be able to answer before December: What AI tools is our organisation actually using right now? Does our privacy policy disclose AI use in decisions that affect clients? Is client data leaving our approved systems? Who is accountable if our AI makes a mistake? Can we explain any AI-assisted decision to a client if asked?
If you cannot answer all five confidently, you have work to do. The good news is that the firms who get this right now will be ahead of every competitor by December. The firms who do not will be scrambling.
I have run this exercise with financial planning firms, legal practices, government teams, and corporate leadership groups. The ones who start now finish comfortably. The ones who wait until November are in trouble.
If you want to get your team ready before December, book a free strategy session. We will work out where you stand and what needs to happen.