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Why and how Australian businesses must comply with the GDPR

18 Nov 2025

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Corporate Advisory, Compliance & Governance

The EU General Data Protection Regulation (GDPR) is one of the world’s most influential privacy frameworks. While designed to protect the personal data of individuals in the European Union (EU), its reach extends far beyond Europe. 

Australian organisations that offer goods or services to EU-based individuals or monitor their online behaviour are directly subject to the GDPR, regardless of where they are established.

For many Australian businesses (especially those operating in technology, e-commerce, education, or tourism) the GDPR is not optional. Failing to comply can result in significant penalties and reputational damage.

Why it matters to Australian businesses:

Scope beyond the EU

The GDPR applies to any business outside the EU that:

  • offers goods or services (paid or free) to individuals in the EU, or
  • monitors EU residents’ behaviour, such as through cookies or analytics tools.

This means an Australian retailer selling online to EU customers, or a software company tracking EU users’ activity, is within scope.

Stronger Individual Rights

The GDPR enhances data subject rights, such as the right to access, correct, delete, “be forgotten” or transfer personal data. Businesses must ensure they can respond efficiently to these requests.

High Penalties for Non-Compliance

Regulators can impose fines of up to €20 million or 4% of annual global turnover, whichever is higher. 

Even for smaller Australian businesses, reputational harm and loss of EU partnerships can be more damaging than the fines themselves.

Alignment with Australia’s Privacy Reforms

Australia’s Privacy Act is being reviewed, and several proposed reforms mirror the GDPR’s principles, such as stronger consent requirements and increased penalties. Understanding and applying GDPR compliance today helps Australian businesses future-proof their privacy programs.

How to Comply: A Practical Framework

Assess whether the GDPR applies

Identify whether your business offers goods or services to EU customers or processes their data through digital channels. Even if you don’t have an EU office, GDPR may still apply.

Map and minimise data flows

Understand what personal data you collect, where it’s stored, and who accesses it. Keep data inventories and only collect information necessary for business purposes.

Review and update privacy policies

Policies must clearly state how EU personal data is collected, used, stored, and shared. They should meet GDPR transparency standards and be easily accessible.

Identify lawful bases for processing

Processing EU personal data requires a lawful basis, such as consent, performance of a contract, or legitimate interest. 

Businesses must document and justify the basis for each processing activity.

Strengthen data security

Adopt technical and organisational measures to protect data, including encryption, access controls, and incident response plans. 

GDPR requires notification of serious data breaches within 72 hours.

Appoint a ‘Privacy Officer’ 

Non-EU organisations that regularly process EU data may need to appoint an EU representative. 

Where large-scale monitoring or sensitive data processing occurs, a Privacy Officer (also called a ‘Data Protection Officer’) may be mandatory.

Review cross-border data transfers

Personal data transferred from the EU to Australia must comply with GDPR rules. 

As Australia is not currently deemed “adequate” for GDRP purposes - businesses must use approved transfer mechanisms, such as ‘Standard Contractual Clauses’.

How Jackson McDonald Can Help

Our Corporate and Commercial team advises clients on navigating privacy laws and aligning compliance frameworks with both the GDPR and Australian requirements. We help organisations design practical solutions, balancing legal risk with operational efficiency.

 

This article was written by  Ariel Bastian,  Senior Associate Corporate Commercial and Anna Kosterich, Restricted Practitioner Corporate Commercial.

 

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ELIZABETH TYLICH

Chairperson & Partner | Corporate Commercial

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