The Complete Guide to Privacy Law Reform for Real Estate Professionals in Australia
Real estate agencies collect and manage a significant amount of personal information. Rental applications, identity documents, contact details, financial information and transaction records can all pass through an agency during the course of everyday business.
That makes privacy law reform an operational issue for the property industry, rather than something that only concerns technology companies.
Australia's privacy framework continues to change. Some reforms have already become law, while another tranche of proposed changes was released for consultation in August 2026. Real estate businesses need to understand the difference between obligations that apply now and reforms that are still being considered.
Key Takeaways
The Privacy Act 1988 is Australia's main federal law governing the handling of personal information.
The Australian Privacy Principles set requirements for areas including collection, use, disclosure, security, access and correction.
Not every small business is automatically covered by the Privacy Act, although important exceptions apply.
From 10 December 2026, covered organisations using certain forms of automated decision-making will have additional privacy-policy transparency obligations.
Australia's second tranche of privacy reform was released as draft legislation in August 2026. Those proposed measures should not yet be treated as enacted law.
What Is Privacy Law and How Does It Affect Real Estate?
Privacy law regulates how organisations collect, hold, use and disclose personal information.
At the federal level, the Privacy Act 1988 and the Australian Privacy Principles, or APPs, form the core framework. The Privacy Act generally covers businesses with annual turnover above $3 million, along with certain smaller businesses that fall within specific categories.
For real estate businesses, that distinction matters. A smaller agency should not automatically assume that it is exempt.
For example, businesses that operate residential tenancy databases are covered regardless of turnover. In addition, small businesses that become reporting entities under Australia's AML/CTF regime must comply with the Privacy Act when handling personal information for activities connected with their AML/CTF obligations.
NSW Fair Trading also recommends a data-minimisation approach to rental applications. Agents should only collect information that is reasonably necessary and explain why the information is required and how it will be used.
What Is Privacy Law Reform?
Privacy law reform refers to changes intended to update Australia's privacy framework as technology, data collection and consumer expectations change.
The Privacy and Other Legislation Amendment Act 2024 progressed the first group of reforms. A further tranche was released for consultation on 31 August 2026. Proposed measures include a broader fair-and-reasonable test for information handling, stronger consent standards and additional individual privacy rights. These second-tranche measures remain proposals at the time of writing.
One enacted change is particularly relevant to businesses adopting AI and automated software. From 10 December 2026, APP entities using personal information in certain automated decisions that could significantly affect an individual's rights or interests must include additional information about that use in their privacy policies.
Key Privacy Obligations for Real Estate Agencies
Area | What agencies should consider | Real estate example |
Collection | Only collect personal information reasonably necessary for the relevant function or activity | Request information needed to assess a tenancy application rather than collecting additional data simply because a platform allows it |
Transparency | Explain how personal information is collected, used and disclosed | Provide appropriate collection notices and maintain a current privacy policy where required |
Security | Take reasonable steps to protect information from misuse, loss and unauthorised access or disclosure | Secure CRM records, tenancy applications, ID documents and archived client files |
Access and correction | Maintain processes for people to access or correct their information where the Privacy Act applies | Respond appropriately when a tenant or client identifies incorrect personal details |
Data breaches | Assess suspected eligible breaches and notify where the legal threshold is met | Respond to compromised email accounts, stolen credentials or unauthorised access to applicant data |
OAIC guidance requires covered entities to take reasonable steps to complete an assessment of a suspected eligible data breach within 30 calendar days. Once there are reasonable grounds to believe an eligible breach has occurred, the OAIC and affected individuals must be notified as soon as practicable.
Steps to Improve Agency Data Compliance
Real estate agencies should start by identifying exactly what personal information they hold and why they hold it.
A practical privacy review can examine information stored across CRMs, property-management systems, email accounts, application platforms, cloud drives and physical files. Agencies can then assess access permissions, retention periods, third-party providers and procedures for deleting information that no longer needs to be kept.
Privacy policies and collection notices should also reflect what the agency actually does. A policy copied from another business is of little value if it does not match the systems, information flows and technology used by the agency.
Where automated tools or AI contribute to important decisions involving personal information, agencies covered by the Privacy Act should also prepare for the December 2026 transparency requirements.
Why Staff Privacy Training Matters
Technical security controls cannot prevent every privacy problem.
Staff still decide what information to request, where to save documents, who receives an email, how long records remain accessible and what happens when something goes wrong.
Regular training helps teams understand data minimisation, appropriate disclosure, secure information handling and internal escalation procedures. It can also help agencies respond consistently when legislation or technology changes.
Keep Your Real Estate Compliance Knowledge Current
Privacy Law Reforms is not listed as one of the NSW Fair Trading compulsory topics for the 2026/27 CPD year, but privacy obligations remain relevant to day-to-day real estate practice. Proxima Academy is currently listed by NSW Fair Trading as an approved provider for the 2026/27 compulsory program.
You can enrol for compulsory CPD topics for 2026/27 or explore Proxima Academy's real estate training programs to keep your professional knowledge current.
