Editor's Note: The "second tranche" of privacy reforms in early 2026 marks a watershed period for Australian mortgage brokers. With the small business exemption expected to be abolished, brokerages with turnovers under $3 million will face the same regulatory scrutiny as major banks.
This isn't just a compliance update; it is a fundamental operational change. The reforms introduce a "fair and reasonable" test for data handling and a statutory tort for serious invasions of privacy. Brokers must prepare now for a landscape where data security is integral to operational performance.
Brokers must be alerted to the new reality under APP 11. It clarifies that "reasonable steps" to protect data include organizational measures. This means that poor staff training is now considered a legal breach, exposing you to significant penalties regardless of your IT security.
Understanding the penalty hierarchy is crucial for risk management. The reforms introduce a tiered system for Body Corporates that dramatically escalates liability for serious breaches.
In an era of AI-powered finance, client trust is your currency. Cybersecurity is no longer just a defensive measure; it is a competitive differentiator.
With 94% of consumers citing data security as their primary concern, brokers who strengthen protection without adding friction will differentiate themselves significantly from competitors who lag behind.
Are you ready for the removal of the exemption? Use this interactive checklist to gauge your current readiness level against the impending reforms.