New public sector data sharing legal guidelines: key considerations for the private sector – Government Contracts, Procurement & PPP

More than a yr after it was first launched (and 251
amendments later), the Data Availability and Transparency Act
(Cth) (DAT Act) got here into power on 1 April 2022. The DAT
Act permits data created, collected or held by a Commonwealth
authorities physique (often known as ‘public sector data’) to be
shared with different Australian authorities departments and Australian

Last yr, we wrote on the first model of the DAT Bill.
Since then, the scope of the DAT Act has been lowered in that it no
longer permits Commonwealth our bodies to share data with private sector

While the private sector can’t presently obtain data via
this Scheme, the Act’s Revised Explanatory Memorandum states
that the motive for their exclusion is to permit the DAT Scheme to
‘set up and mature’. The Act gives that the DAT legal guidelines
might be reviewed in three years. It additionally has a 5-yr sundown

It could also be that following additional evaluate, the DAT Act will
ultimately be expanded to permit private sector organisations to
obtain public sector data. The necessities and obligations positioned
on public sector recipients underneath the DAT Scheme are useful
indicators as to what accountable data sharing in Australia will
appear to be going ahead. Already, data ethics have gotten a
elementary enterprise consideration when organisations determine the best way to
acquire, use and disclose data. Customer and
people’ expectations about how companies use and defend
private data are additionally rising.

We anticipate that companies’ duty to cope with
data ethically and transparently will grow to be much more vital
and that classes could be learnt from the DAT Act. In this text,
we define how the Act presently operates for public sector our bodies
and we additionally spotlight sure data governance practices for the
private sector to think about in the occasion that the data sharing
scheme in the DAT Act is prolonged to the private sector.

How does the DAT Act function?

The DAT Act permits data created, collected or held by a
Commonwealth entity, firm or company to be shared with Australian
State and Territory our bodies. These our bodies are outlined to imply
departments, our bodies established underneath State or Territory regulation for a
public goal or statutory workplace holders. Data can be shared
with Australian universities. The forms of data accessible underneath
the DAT Act usually are not exhaustively described however embody private
data (together with delicate data), biometric data and
de-recognized data created by a data service supplier.

Where the Act’s situations are met, data could be shared
immediately with recipient entities or through an ‘accredited data
service supplier’ (ADSP). These intermediaries
are recognised as having applicable technical experience to carry out
data providers similar to de-identification, safe entry and sophisticated
data integration providers.

Data sharing underneath the DAT Act is overseen and controlled by the
National Data Commissioner (NDC). Private sector
entities, international entities and regulation enforcement and intelligence
companies can’t obtain data underneath the DAT Act.

Eligibility to obtain data

To obtain data, a public sector recipient entity should grow to be
accredited by the NDC or the Minister. To qualify for
accreditation, the entity should be thought-about to have applicable
data administration and governance insurance policies and practices in place, be
capable of minimise the threat of unauthorised entry and be capable of
guarantee the privateness, safety and applicable use of data.

Purpose of data transfers

Data transfers can solely be carried out for three functions underneath
the DAT Act. These are to permit Australian governments to ship
efficient providers, to facilitate higher knowledgeable coverage and
applications, and to assist analysis and growth.

Data can’t be shared for a ‘precluded goal’ which is
one which pertains to an enforcement associated goal or which
pertains to or threatens nationwide safety inside the that means of the
National Security Information (Criminal and Civil Proceedings)
Act 2004
. (Cth) The DAT Act gives a listing of
‘enforcement associated functions’ which incorporates detecting,
investigating, prosecuting or punishing an offence and conducting
surveillance, monitoring or intelligence-gathering actions.

Consistency with data sharing rules

Data sharing should even be in line with the 5 specified
data sharing rules. These rules are based mostly on the
‘5 safes’, a world set of requirements already
utilized by many organisations to handle the dangers of data sharing.
They require consideration of whether or not data is being transferred for
an moral, applicable goal which serves the public curiosity.
The rules are additionally involved with how the data might be shared,
accessed and guarded, each following the switch and through any
future use. We clarify the 5 rules, and supply examples of
how entities could adjust to them, beneath.

Data sharing agreements

Data sharing should happen in accordance with a ‘data sharing
settlement’ registered with the NDC. A data sharing settlement
should embody the events’ data sharing goal and a
description of the events’ compliance with the 5 data
sharing rules. It should additionally clarify the output of the mission
for which the data is being shared and the way data coated by the
settlement might be handled when the settlement ends. The NDC has
produced a template data sharing settlement and greatest follow information,
accessible right here.

Privacy obligations

The DAT Act additionally locations privateness safety and data breach
response obligations on public sector entities sharing and
receiving data, which mirror obligations in the Privacy Act
(Cth). For instance, earlier than an entity shares data
containing private data (i.e. details about an
recognized particular person or a person who within reason
identifiable), it should search the particular person’s consent until it
is unreasonable or impracticable to take action.

The recipient entity can solely acquire and use data containing
private data in the event that they adjust to necessities underneath the
Privacy Act, referred to all through the DAT Act as the ‘privateness
protection situation’. If the Privacy Act wouldn’t ordinarily
apply to the recipient entity, then the entity should comply

  • a time period in the data sharing settlement which prohibits the
    recipient entity from amassing or utilizing data in a method
    which might breach the Australian Privacy Principles
    (APPs) contained inside the Privacy Act; or

  • a State or Territory regulation which requires the receipt entity to
    defend the private data in a method just like that supplied
    by the APPs.

If the recipient entity is fulfilling the privateness protection
situation through a time period in the data sharing settlement (which requires
it to behave in accordance with the APPs), then a breach of this time period
might be handled the identical as a breach of the APPs underneath the Privacy


The DAT Act imposes important civil and prison penalties for
the unauthorised sharing, assortment or use of public sector data,
and for failure to adjust to any accreditation situations or data
sharing settlement obligations. Specifically, entities (which refers
to people, Commonwealth, State or Territory our bodies, and
Australian universities) could also be fined $66,600 and companies could
be fined $333,000. If the entity is reckless with reference as to whether
their data sharing is authorised, the prison penalty is 5
years’ imprisonment and / or the effective described above.

There is the next civil penalty of $133, 200 for entities whose
contravention is taken into account ‘critical’ underneath the DAT Act.
The seriousness could be decided based mostly on any of the following
issues: the sensitivity of the data, the penalties of the
contravention for these to whom the data relates and the
entities’ degree of care in direction of their obligations underneath
the data sharing scheme.

Key considerations for the private sector

We count on that the graduation of the DAT Act will heighten the
concentrate on the accountable sharing of data, which is prone to lengthen
past the public sector. The DAT Act incorporates some greatest follow
necessities that we expect are helpful for the private sector to
test in opposition to its personal data sharing practices.

Organisations will need to have applicable data administration and
governance practices

As described above, the DAT Act requires that an organisation
receiving data underneath the Scheme has applicable data administration and
governance methods in place, to make sure shared data is protected,
and to mitigate dangers. The Revised Explanatory Memorandum suggests
that to satisfy this standards, organisations could must:

  • have insurance policies in place which cope with dealing with data, managing
    threat and responding to incidents;

  • appoint a Chief Data Officer (or one other appropriately
    certified particular person) to supply management and accountability for the
    organisation’s data use;

  • have bodily and cyber management safety settings in place to
    stop unauthorised entry to data, similar to implementing the
    ISO/IEC 27001 framework; and

  • emphasise the significance of coping with data appropriately
    when hiring new workers (for instance, by vetting personnel,
    integrating data coaching into on boarding and off boarding
    processes and thru function descriptions for new starters who will
    be coping with data). There ought to be ongoing training on the
    significance of data safety.

Given the Commonwealth Government expects that data recipients
underneath the DAT Scheme may have these sorts of methods in place, it
could also be helpful for private sector organisations to take them into
account when designing methods to make use of, handle and share data in the
coming years. They also needs to think about these in relation to
contractual preparations which might be put in place with third occasion
suppliers and associates.

Organisations ought to familiarise themselves with the 5

Requests for public sector data underneath the DAT Scheme are
assessed in opposition to the 5 rules and data sharing agreements
made underneath the Act should define a data recipient’s compliance
with these rules. Given the centrality of those rules to
the DAT scheme, and their doubtless ongoing significance in data
sharing, we suggest that organisations evaluate their data
governance practices for consistency with them.

Below, we set out some key considerations relating to every
precept based mostly on the Australian Government ‘Best Practice
Guide to Applying Data Sharing Principles’ (the
) with some solutions of what they could appear to be in
follow for your organisation.

  1. Project Principle. The Project Principle
    requires organisations to think about whether or not sharing data will lead
    to a public profit. It requires consideration of whether or not there are
    authorized or moral restrictions on sharing or utilizing sure sorts of
    data and whether or not an organisation must have particular methods and
    processes in place to greatest handle data of this kind.

    This precept focuses on making certain the data share is in the public
    curiosity. Organisations ought to subsequently talk about, and doc,
    authorized, moral and ethical considerations which relate to the
    switch and use of the data. An efficient governance framework in
    this context could also be one which permits an organisation to evaluate,
    monitor and oversee the use of shared data, to make sure its use
    stays in line with the public curiosity.

    The query of how this ‘public curiosity’ issue could be
    met in the private sector is price contemplating. Increasingly,
    organisations and their boards are receiving regulatory,
    legislative, investor and shareholder strain to step up and
    handle environmental, social and governance (ESG)
    points. Whether or not a enterprise makes use of data in a
    accountable and moral method, and for a public profit, might
    quickly grow to be a part of the evaluation of the enterprise’ administration
    of ESG threat and alternative.

  2. People Principle. The People Principle
    requires entities to think about whether or not these receiving and utilizing
    shared data perceive their obligations. Organisations ought to
    practice their workers in data storage, secure use and technical expertise.
    It might also be essential to implement authorisation processes so
    that data can solely be accessed by workers with related, up-to-date

  3. Settings Principle. The Settings Principle
    focuses on the bodily and IT safety controls which be sure that
    shared data is transferred and accessed safely. Organisations
    ought to think about how they will minimise the threat of unauthorised
    entry, use or disclosure of shared data. This could contain granting
    restricted entry to rooms the place data is made accessible,
    supervising workers entry to data and auditing bodily and IT
    environments recurrently to make sure they’re offering adequate

  4. Data Principle. The Data Principle goals to
    be sure that protections which restrict the use of shared data are
    applicable and proportionate based mostly on the sensitivity of that
    data. Organisations ought to guarantee their workers perceive that every one
    data sharing incorporates some threat, and the 5 rules usually are not
    supposed to eradicate threat in its entirety. Instead, the rules
    goal to see these dangers lowered to a suitable degree. For instance,
    the Guide states that it might be essential to ‘deal with’
    delicate data previous to transferring it, to lower or change the
    degree of element accessible to the recipient. However, the Guide
    means that as treating data could lower its utility, this
    ought to solely be carried out if it isn’t doable to handle the related
    threat utilizing the Project, People and Settings rules.

  5. Output Principle. Under the Output Principle,
    organisations ought to think about how data or data created as a
    results of a data sharing association might be handled. It
    requires organisations to consider whether or not this output might be
    publicly launched or transferred underneath a brand new data sharing settlement
    to 3rd events. Organisations also needs to take into consideration how privateness
    and confidentiality might be protected in the output. These objects
    ought to be handled in the related data sharing settlement.
    Organisations might also want to implement formal processes the place any
    output data is checked and permitted earlier than it’s launched

Key takeaways

Lawmakers consider that by facilitating the sharing of public
sector data, the DAT Scheme will, ‘assist a contemporary data-based
society, driving innovation and stimulating financial

The graduation of the DAT Act makes it well timed for private
sector organisations to evaluate and replace their processes, in order that they
are higher ready to interact with a data-based society.

The content material of this text is meant to supply a normal
information to the subject material. Specialist recommendation ought to be sought
about your particular circumstances.

    Lawyers Weekly
Law agency of the yr

Employer of Choice for Gender Equality

Leave a Reply

Your email address will not be published.