21 January 2026

Digital Bytes – privacy, cyber, AI & data update

Helen Clarke, Phillip Magness, Viva Swords, Lydia Cowan-Dillon, Grace Crowley, Leonie Higgins, Georgia Brown
An abstract, digitally-generated image of layered digital sheets of AI coding. Colours are muted blue, purple and green.

This first instalment of Digital Bytes for 2026 brings you up to date on all the important developments in the privacy, cyber, AI and data space from the last quarter of 2025 into the new year. 

Social media age-gating in Australia takes effect
Australia’s new National AI Plan and AI Safety Institute
Treasury’s final report released on how Australia’s consumer laws apply to AI
Latest ACSC guidance on AI use and security for critical infrastructure and small businesses
Australian Government rules out introduction of a “text and data mining” copyright exemption
Productivity Commission’s final report on harnessing data and digital technology doubles down on alternative privacy regulation proposal
Lessons from the OAIC’s latest privacy determinations and investigations on data breaches and employee records disclosure
Other key privacy updates from the latest OAIC activities
Workplace surveillance and digital work system law reforms progress in New South Wales and Victoria
Insights from the latest reports on cyber and critical infrastructure threats
Cyber security priorities for boards in 2025-26
Data centre investment and momentum grow with the launch of Data Centres Australia
What Australia’s significant merger reforms mean for technology and IP transactions
Other key telco regulatory and data updates
Looking ahead
  • On 9 January 2026, the OAIC announced it was undertaking a privacy compliance sweep of privacy policies, with a particular focus on where personal information is collected in person. Sectors of focus are rental and property, chemists and pharmacists, licensed venues, car rental companies, car dealerships, pawnbrokers and second hand dealers.
  • After an interim judgment was released in a New South Wales District Court case alleging an infringement of the new tort of privacy under the Privacy Act (Kurraba Group Pty Ltd & Anor v Williams[2025] NSWDC 396), it will be interesting to see what insights about the operation of the tort will be gathered from the final judgment.
  • Banks, telcos and some digital platforms will be interested in the various draft instruments for the Scams Prevention Framework released by Treasury. Consultation closed on 5 January 2026.
  • The Department of Home Affairs is consulting on proposed amendments to the Critical Infrastructure Risk Management Program (CIRMP) Rules under the Security of Critical Infrastructure Act 2018 (Cth), with consultation open until 13 February 2026. The Department’s proposed updates to the Rules are discussed in its Consultation Paper.
  • The Australian Government has confirmed that draft legislation amending the Australian Consumer Law to address unfair subscription practices, which primarily occur through digital user journeys, will be released for public consultation in early 2026. In the meantime, the ACCC has not waited for this new legislation to take action on these issues, recently commencing Federal Court proceedings against HelloFresh and YouFoodz for subscription traps.
  • New mandatory codes under the Online Safety Act 2021 (Cth) will commence on 9 March 2026. The codes require various types of digital service providers (including AI providers) to protect children against certain age-restricted material. The commencement of these codes is timely, with the eSafety Commissioner recently announcing increased reports of misuse of the Grok AI chatbot to develop material harmful for children, such as sexually explicit content.
  • The status of the ‘Tranche 2’ Privacy Act reforms is currently unknown. In 2025, the OAIC confirmed that the Attorney-General’s department will lead the next round of reforms, however consultation has not yet commenced. 
What we think 2026 has in store for privacy, cyber, data and AI 

In previous years, most predictions about the year ahead for privacy, cyber, data and AI highlight their increasing impact across all sectors. 

These matters are now high on the agenda for businesses and organisations across all sectors, and there is a possibility that, for many organisations, they have peaked.

In our view, 2026 is likely to have in store:

  • sustained interest by the OAIC in data breaches and personal information security, in an effort to ensure business and government are putting privacy and cyber as high on their agenda as possible.
  • continued focus on ensuring that cyber is not an “IT-only” issue in organisations and that it is the responsibility of everyone in the organisation, including active Board interest and participation in cyber matters and cyber exercises.
  • ongoing discussion about whether there are harms arising from AI that justify bespoke regulation, across all domains that AI touches such as intellectual property, confidentiality and privacy, and workforce. AI risk and opportunity will also remain a clear imperative for Boards.

The new year is an opportunity to take stock of your organisation’s privacy, cyber, data and AI maturity; to identify risk and compliance gaps and areas for improvement, and to take well-informed steps to address them. 

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.