5 May 2026

Digital Bytes – privacy, cyber, AI & data update

Helen Clarke, Phillip Magness, Viva Swords, Lydia Cowan-Dillon, Grace Crowley, Leonie Higgins, Anna Harrison
Fibre optics (abstract background), purple and blue colourings. Representing data, the internet, technology.

Welcome to the May 2026 edition of Digital Bytes, our quarterly snapshot of key legal and regulatory developments shaping Australia’s digital, data and technology landscape.

This edition arrives for Privacy Awareness Week 2026 and at a time of sustained regulatory momentum and increasing enforcement activity. Children’s online privacy remains firmly in focus with the release of the exposure draft of the Children’s Online Privacy Code, while recent penalty outcomes underscore the financial and reputational consequences of governance and compliance failures related to cyber security. Courts and regulators are also continuing to shape the emerging contours of Australia’s data and AI framework, highlighted by the latest decision on facial recognition and privacy, and new cases testing the intersection of artificial intelligence and legal professional privilege.

Beyond privacy and AI, this edition canvasses significant developments in online safety, ransomware and cyber security threats, and the expanding reach of critical infrastructure and surveillance regimes. We also consider the data transfer implications of the Australia-EU trade agreement and what the proposed new consumer laws on unfair trading and subscriptions mean for the technology sector and its customers.

As always, Digital Bytes is designed to be quick, practical and accessible, flagging what matters, what’s changing and what organisations should be thinking about now. We hope you find this edition helpful and we welcome discussions on what these developments mean for your business. As part of Privacy Awareness Week (4–10 May 2026), we have also shared five practical tips for managing privacy complaints effectively, which you can read in our latest article

Latest privacy determination focuses on overcollection and unfair collection of personal information
Exposure draft of the Children’s Online Privacy Code released
Facial recognition technology can be used in retail settings without consent to address serious threats and serious misconduct – Bunnings appeal decision
First ASIC cyber incident penalty: FIIG Securities ordered to pay $2.5 million for cyber security failures
Injunctions after data breaches and regulatory focus
The new Australia-EU Free Trade Agreement aims to facilitate cross-border data transfer
How using AI can threaten legal professional privilege
Proposed updates to the Security of Critical Infrastructure framework progress, including new guidance on cyber security incident notification
NSW’s laws protecting workers from digital work systems may impact surveillance and monitoring
New consumer laws target digital user journeys and subscriptions
Latest eSafety and online safety developments
Other updates
Looking ahead

Private sector entities will be permitted to apply to access and use the Australian Government Digital ID System from 30 November 2026, opening up new opportunities to enhance privacy and minimise collection of identity documents. This expansion coincides with the due date for the statutory review of the Digital ID Act 2024 (Cth). 

The OAIC is preparing to release an issues paper on automated decision‑making (ADM) ahead of the commencement of new transparency obligations in December 2026, which will set out regulatory expectations about when ADM transparency obligations apply and how they should be addressed in privacy policies. 

The OAIC has indicated that it is progressing enforcement activity in sectors relying heavily on digital platforms and connected technologies, with investigations nearing completion in the rental technology space and active investigations into overseas vehicle manufacturers focusing on voice monitoring and in‑vehicle data collection. It is yet to publish the outcomes of this activity.

It is safe to say that privacy, cyber, AI and data remain top issues for organisations doing business in Australia.

How can we assist?

We have a large team of privacy, data protection and cyber specialists, with substantial experience across the whole spectrum of data, privacy and cyber compliance and incident management. 

For a more detailed briefing on any of these updates, or to discuss how we can assist your organisation to manage its risks in these rapidly evolving areas, please get in touch.