Australia’s Privacy Act: Major reforms affecting consent management in 2026

Australia’s Privacy Act: Major reforms affecting consent management in 2026

Australia’s Privacy Act is undergoing its most significant upgrade in decades. Learn what’s changing in 2026, how the Australian Privacy Principles (APPs) apply, what PII means in Australia, and how Didomi helps your organization stay compliant with evolving privacy laws.

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What is the Australian Privacy Act?

The Privacy Act 1988 is Australia’s primary data protection law regulating how organizations collect, use, store, and disclose personal information. It applies to most Australian businesses, government agencies, and many international companies operating in Australia or handling the personal information of Australian individuals.
The law is built around the Australian Privacy Principles (APPs), which govern transparency, purpose limitation, consent, access rights, data quality, security, and cross-border disclosures.
The Act is currently undergoing major reforms to modernize privacy protections for a digital, data-driven economy. These reforms will significantly affect online tracking, consent management, and digital advertising practices.

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What is Personal Identifiable Information (PII) in Australia?

Australia uses the term personal information, which is similar to PII but broader in scope. The definition covers any information or opinion about an identified individual or an individual who is reasonably identifiable.

Definition of PII vs. Personal Information

• Personal Information (PI) under the Privacy Act: Any information that identifies or could reasonably identify a person.    
• Personally Identifiable Information (PII): A term often used internationally to describe identifying information, but in Australia, PII is essentially covered under the broader “personal information” definition.

The Privacy Act often goes further than global PII definitions by covering opinions, inferred data, and contextual identifiers.

Sensitive Information Categories

Sensitive information is a special category of personal information that attracts stronger protections. It includes:
• Health and biometric data
• Racial or ethnic origin
• Religious or philosophical beliefs
• Sexual orientation or practices
• Criminal records
• Trade union membership
• Genetic information

Processing sensitive information typically requires explicit consent.

Real-world examples of PII considered protected in Australia

Australia considers the following examples to be personal information:
• Names, emails, phone numbers
• Employee records
• Location data
• Online identifiers (cookies, advertising IDs)
• Financial information
• Customer account details
• IP addresses when linked to individuals
• Device identifiers tied to user behaviour
• Inferred stereotypes or behavioural profiles

The AustralianPrivacy Principles

The Privacy Act is built on 13 core Australian Privacy Principles that apply to most organizations (“APP entities”).

These APPs shape privacy governance, transparency, and security across Australian organizations.

App 1

Legal basis must be established for each processing activity

App 2

Anonymity and pseudonymity

App 3

Collection of solicited personal information

App 4

Dealing with unsolicited personal information

App 5

Notification of the collection of personal information

App 6

Use or disclosure of personal information

App 7

Direct marketing rules

App 8

Cross-border disclosure of personal information

App 9

Adoption, use, or disclosure of government identifiers

App 10

Quality of personal information

App 11

Security of personal information

App 12

Access to personal information

App 13

Correction of personal information

Privacy Act Reform:
What’s Changing in 2026?

Australia is implementing extensive reforms to modernize the Privacy Act. These changes (rolling out through 2025–2026) will have major implications for consent, online tracking, children’s privacy, and cross-border data handling.

Expected 2026 reform highlights include:
Broader definition of personal information

Expands to explicitly include technical identifiers such as IPs, device IDs, and cookie identifiers.

Stronger consent requirements

Consent must be: voluntary, informed, current, specific, unambiguous.
Pre-ticked boxes and dark patterns will be restricted.

New rights for individuals

Including:
• Right to erasure
• Right to object/opt-out of targeting
• Right to correction
• Right to data portability

Children’s privacy protections

Likely introduction of:
• A children’s privacy code
• Stronger age verification expectations
• High-privacy defaults for minors

Higher penalties for breaches

Penalties for serious or repeated breaches may reach:
• AU$50 million
• Three times the benefit obtained
or
• 30% of adjusted turnover over a period

Cookie & tracking rules clarified

Cookies and online tracking identifiers are explicitly considered personal information, requiring:
• Clear purpose notices
• User controls
• Valid consent in specific cases (e.g., sensitive data inference)

Compliance Checklist for the Australian Privacy Act

✓ Map personal information and data flows
✓ Review collection notices and privacy policies
✓ Update consent mechanisms to meet 2026 standards
✓ Implement children's privacy safeguards
✓ Introduce rights management workflows (access, deletion, portability)
✓ Deploy cookie and tracking transparency tools
✓ Review third-party data sharing and cross-border rules
✓ Conduct Privacy Impact Assessments (PIAs)
✓ Strengthen internal governance processes
✓ Implement audit-ready consent logs
✓ Ensure data minimization, security, and retention policies
✓ Prepare for reform-driven changes in advertising and analytics

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How Didomi can help you meet Australia’s privacy requirements

Centralized consent & preference management

Collect and manage consent aligned with updated APP and reform standards.

Cookie & tracking transparency

Offer clear information and user controls over online identifiers and tracking.

Audit-ready logs

Store proof of consent with timestamps, device data, and versioning.

Preference centers

Allow users to modify their choices at any time.

Multiregion compliance support

Manage GDPR, CCPA, LGPD, and Australia’s Privacy Act from one platform.

Developer-friendly integrations

SDKs, APIs, server-side setups, and Webflow-ready components.

How to Set Up Your Consent Banner for the Australian Privacy Act

Clarity

Use clear, plain-language notices

Granularity

Provide granular choices, especially for marketing, analytics, and third-party tracking

Neutrality

Avoid dark patterns and ensure neutral UX

Explicitly

Enable explicit consent for sensitive data and minors

Localization

Localize for Australian users

Access

Provide persistent access to the preference center

Auditable

Store audit-ready consent logs

Synchronisation

Ensure cross-device syncing for logged-in users

Frequently Asked Questions (FAQ)

Who does the Privacy Act apply to in Australia?
Are small businesses exempt from the Privacy Act?
What is considered sensitive information?
Does the Privacy Act apply to overseas companies?
Are cookies considered personal information?
What changes are proposed in the Privacy Act reform?