What is GDPR and what does it mean to my Australian business?

April 19, 2023

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What is the GDPR?

In April 2016 the European Parliament adopted the General Data Protection Regulation (GDPR), which regulates how businesses must handle, secure and share the data of EU residents. The GDPR applies from 25 May 2018, and has important implications for organisations inside and outside of the EU, including Australia.

Who is affected?

The GDPR applies to:
  • EU-based businesses; and
  • Businesses outside of the EU which:
    • offer goods or services to individuals in the EU;
    • have an office in the EU; or
    • monitor the behavior of individuals in the EU (including profiling of individuals through online data).
Am I affected?

Examples of transactions (of a Western Australian business) that may come under the GDPR include:
  • Taking an online booking for accommodation in WA from a tourist travelling from Paris;
  • Obtaining credit card information, from an Australian travelling through Germany, to change their flight home; or
  • Using information from companies profiling potential customers in Spain through their online preferences.
What is personal data?

The definition of personal data for the purposes of the GDPR is wide and includes any information relating to an identified or identifiable natural person. Such a person is referred to as a ‘data subject’. This information can include basic information, such as a name or address, to information about the person’s health, ethnicity, or credit card transactions.

What do I need to do? – Questions to ask yourself about your business

1. How does my business handle personal data?
The first step is to carry out an audit on your current processes and procedures. Knowledge is power. Without knowledge of how your business collects, uses, transfers, stores and removes personal data, it will be impossible to be sure your business is are meeting its obligations.

2. Does my business have a lawful basis for handling personal data?
Under the GDPR, your business must have a lawful basis for processing personal data. There are 6 lawful bases identified: consent, contract, legal obligation, vital interests, public task (processing data in the public interest) and necessity (where processing is necessary for the legitimate interests of your business). You should be able to identify under which category your business is processing an individual’s data.

3. Is my Privacy Policy (and Privacy Collection Notification Statement) relevant to my business and does it comply with the GDPR?
Having a template privacy policy and statement is not enough. A prime focus of the GDPR is transparency and accountability. A well thought out privacy policy and statement will tell your clients and customers the steps your business is taking to protect their data and comply with privacy laws.

4. Do my third party suppliers comply with the GDPR?
You may still be liable for a data breach that did not occur on your watch, if the breach occurred with data shared with a third party. Your business should take active steps to ensure that relevant third party suppliers also comply with data protections laws, including the GDPR.

5. Has my business taken appropriate steps to secure the personal data it is processing?
The protection of personal data has never been more important. Significant penalties apply under the GDPR (and local privacy laws), and there are stringent requirements for notification and reporting on breaches. Taking measures to ensure adequate protection, can include: deciding when to process personal data, deciding when to destroy it, and ways to avoid the misuse or interference with personal data. As well as ensuring your compliance with the GDPR, such measures will give your customers and clients peace of mind in choosing to entrust you with their data.

Large scale & sensitive data dealings

If you are collecting or processing data of EU individuals on a large scale, or are processing sensitive data, further obligations may apply, including the appointment of a data representative in the EU.

If you would like more information on this issue, please contact Bailiwick Legal at (08) 9321 5451. 

The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
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