Privacy Act Reforms: What Integrators Need to Know
There’s a quiet shift happening in Canberra, and while it hasn’t made many front pages, it could soon reshape how smart home professionals operate across Australia. The Federal Government is preparing to overhaul the Privacy Act 1988, bringing it into the 21st century and, in some areas, pushing it closer to the strict standards seen in Europe’s General Data Protection Regulation (GDPR). For many smart home integrators, this is the first time privacy compliance will become a serious part of day-to-day business. The time to pay attention is now.
For years, the Privacy Act has largely applied to larger organisations—typically those with an annual turnover of more than $3 million. Small integration businesses have been exempt, flying under the regulatory radar while building homes filled with connected devices. But that’s about to change. The Federal Government’s proposed reforms include removing the small business exemption, meaning that all companies, regardless of size, will soon be responsible for how they collect, store, and use personal data.
For an industry that thrives on remote access, app integration, cloud control, voice recognition, and smart surveillance, this is no small shift. If you’re installing systems that collect data, even if you don’t directly process or store it, you may now be accountable for how that data is handled.
The basic principle is straightforward: if you collect personal information, you must protect it. But in a smart home, personal information goes far beyond names and email addresses. Lighting schedules can reveal when people are home. Door sensors track daily routines. Voice assistants capture spoken commands, sometimes unintentionally. IP addresses, device IDs, behavioural patterns, and preferences are all part of the modern smart home experience. And under the new laws, this kind of data will be considered “personal information” in many cases.
Integrators may soon be legally required to:
Clearly inform clients about what data is being collected and why
Obtain meaningful consent before storing, sharing, or processing personal information
Store data securely, whether it’s kept locally or in the cloud
Ensure third-party systems meet basic privacy and security requirements
Report serious data breaches to the Office of the Australian Information Commissioner (OAIC) within 72 hours
This final requirement (i.e. mandatory breach notification) could be particularly challenging for smaller firms. Consider a situation where a smart camera is compromised because of a weak password, or a cloud integration is exposed due to poor security hygiene. Even if the fault lies with the client or a third-party vendor, you may still be required to report the breach if you facilitated the system’s design or configuration. That level of responsibility will be new territory for many in the industry.
Another significant change is the introduction of a ‘right to deletion’. Clients will be able to request that their personal data be permanently removed from systems. While that sounds reasonable in theory, the practicalities are murky, especially in multi-vendor smart homes with a mix of cloud services, local servers, and third-party platforms. If a client sells their home and requests the deletion of all data stored on their automation system, will you know where that data is held? Will you be able to remove it from all locations?
The government also plans to expand the definition of personal information. It won’t just be names and email addresses. IP addresses, device usage data, voice recordings, and behavioural patterns could all be caught by the new definitions. Many of the most popular automation systems collect and analyse this type of information to enable features like occupancy-based scenes, climate control optimisation, and predictive automation. If you’ve ever programmed a lighting system that learns a client’s habits, that data is likely to be regulated under the new framework.
What should integrators do now?
Start by mapping your data flows. Understand exactly what kind of data you touch—directly or indirectly. That includes client contact details, Wi-Fi credentials, system preferences, and data captured by devices like cameras, intercoms, and voice assistants. If you subcontract programming, or use cloud services to remotely monitor or maintain systems, make sure you understand where that data goes and who has access.
Review your contracts, quotes and documentation. Many integrators currently include generic disclaimers like “we do not store personal data”; but, if your installations involve connected platforms that do, that disclaimer won’t protect you. You’ll need to update your terms of service to explain what data is collected, who holds it, and what your role is in its collection and protection.
Audit your vendors. Do the brands you work with offer meaningful privacy controls? Do their cloud services comply with international security standards? Can users delete their data? If your preferred suppliers don’t offer adequate answers to these questions, you may need to reconsider which platforms you recommend.
Train your team. Privacy isn’t just a backend issue. It affects how systems are programmed, how client access is managed, and how remote support is delivered. Make privacy and security part of your internal training program. Enforce strong password practices. Use two-factor authentication wherever possible. Ensure that every member of your team understands the importance of client data and how to protect it.
Limit your access. If you provide remote support, make sure you only retain access to systems with explicit client permission. Log who has access, and for how long. Provide clients with audit trails if requested. Avoid retaining admin-level credentials unless necessary and if you do, protect them like you would your own banking login.
Offer a privacy audit as a service. Many clients don’t know how much personal data their smart home is collecting or who has access to it. By offering a privacy audit as part of your maintenance package, you can provide real value while demonstrating your commitment to professionalism.
The OAIC is expected to receive expanded powers under the reform package, including greater enforcement capacity and increased penalties for non-compliance. But even beyond the legal implications, this is a moment for the smart home industry to elevate its standards. As homes become more connected, the line between lifestyle technology and sensitive personal data is disappearing. Integrators are no longer just configuring control systems. They are helping to govern the flow of data inside the most private environments people inhabit.
This brings with it a new kind of trust. Clients aren’t just trusting you with AV systems or lighting controls. They’re trusting you with the patterns of their lives. When they hand over access to their automation app or give you control of their security settings, they’re putting their privacy in your hands. If you can demonstrate that you take that responsibility seriously, it becomes a powerful differentiator in an increasingly competitive market.
These reforms are still in progress, and it’s likely there will be transitional arrangements once legislation is finalised. But waiting until the law is enacted is risky. Clients are already starting to ask tougher questions about where their data lives and how it’s used. Regulators are watching how sectors handle digital responsibility. And the smartest integrators are getting ahead of the curve now by embedding privacy into their design processes, their client communications and their professional culture.
Because in a smart home, privacy isn’t just a feature. It’s the foundation. And soon, it will be the law.