Probably yes, if you use any automated tools that make decisions using customer or staff data.
On 10 December 2026, changes to the Privacy Act come into effect that require Australian businesses to be more transparent about where automated tools are involved in decisions that affect people. The obligation isn’t limited to sophisticated AI. It covers any computer program that uses personal information to make a decision that could significantly affect someone’s rights or interests. That includes scoring tools, automated triage, eligibility checks, and similar processes that many businesses have been running for years without thinking of them as AI.
The relevant threshold is whether your organisation is an APP entity — broadly, businesses with annual turnover above AUD 3 million, and others that handle sensitive information or operate under specific legislation. If that’s you, the December deadline applies.
What the new rules require, in plain terms: your privacy policy needs to disclose where you’re using automated processes to make significant decisions. Individuals will also have the right to ask how a particular decision was made, and in some cases to request that a human review it.
The businesses that will struggle in December are not the ones that use AI heavily. They’re the ones that haven’t mapped what they’re actually doing. Most mid-market firms don’t have a clear picture of which of their tools touch personal data, which of those make decisions automatically, and which of those decisions are significant enough to trigger the new obligations. Getting that picture is the work.
If you’re not sure whether this applies to you, a good first step is a conversation with someone who can help you scope it quickly. That’s a 30-minute exercise, not a six-month project.
If you want to work through how this applies to your business, I offer a free call.
This content is for general information only and does not constitute legal advice. For advice specific to your circumstances, consult a qualified Australian privacy lawyer.
