Small business not prepared for Privacy Act changes

Sydney, March 12, 2014 – Approximately one in three Australian small and medium-sized enterprises (SMEs) are unaware of changes to the Privacy Act 1988, which came into effect today, and impacts how businesses capture, handle, use and process personal information, according to the latest SME research from leading small business finance specialist Bibby Financial Services and research firm CoreData.

The changes to the Privacy Act could affect how SMEs use personal information for direct marketing and the disclosure of personal information to people overseas.

New research from Bibby and CoreData, which surveyed a range of SMEs that may be impacted by the Privacy Act, found that 37 per cent of respondents are not aware of changes to the Privacy Act or their potential impact. On the flipside, 40 per cent believe the changes to the Privacy Act won’t impact their business.

Mark Cleaver, Managing Director, Australia and New Zealand, said: “Of potential concern is the 16 per cent of respondents who said they won’t be making any adjustments in response to changes to the Privacy Act. These findings reinforce the need for SMEs to receive adequate education and work to stay abreast of all changes to relevant legislation and regulations,” Mr Cleaver said. 

“The Federal Government has launched a Privacy Checklist for Small Business which details what sort of businesses need to comply with the Privacy Act. All SMEs should complete this checklist. If you are still unsure if your business needs to comply, you may need to seek advice from a lawyer,” Mr Cleaver said.

Respondents from the IT and media industry (36%) were found to have already made changes or in the process of making changes in relation to the Privacy Act according to Bibby/ CoreData research. They are closely followed by those from financial and insurance services (36 per cent). 

The research by Bibby and CoreData was carried out from February 3-14, with a total of 859 responses collected. The survey was conducted on a range of businesses with annual turnover of less than $200,000 to over $50,000 million.

The research reveals a higher proportion of medium-sized businesses are aware of changes to the Privacy Act. Two in five respondents from micro businesses or those with 1-4 employees, are unaware of the changes to the Privacy Act, this compares to 35 per cent of medium-size businesses, or those with 20-199 employees.

The Privacy Act 1988 currently protects personal information handled by large businesses and health service providers of any size. The Privacy Act may apply to a small business if it has an annual turnover of $3 million or less and either: trades in personal information; is related to an entity which is captured by the legislation; provides services under a Commonwealth contract; runs a residential tenancy database; is related to a larger business; or is a reporting entity under the Anti-Money Laundering and Counter-Terrorism Financing Act.

About Bibby Financial Services
Bibby Financial Services is one of the world’s leading global debtor finance specialists (also known as invoice finance, factoring, cash flow finance and invoice discounting) - a flexible and accessible cash flow funding tool for small and medium sized businesses.  With over 6500 clients in 15 countries worldwide, Bibby Financial Services is part of the Bibby Line Group, a family-owned business-to-business services group with origins in shipping dating back over 200 years to 1807.
 
Debtor finance is designed to improve business cash flow and support business growth by releasing cash tied up in unpaid invoices. Unlike other funding arrangements, no real estate security is required, making it more accessible for small and medium sized business owners.

Bibby Financial Services Australia has grown dramatically, in recent years at an average 20% pa, due to increasing awareness of debtor finance as a smart choice for improving the cash flow, and a commitment to providing flexible, tailored solutions quickly. It now serves clients nationally, via a network of offices in Sydney, Melbourne, Brisbane, Perth and Adelaide.

For more information on Bibby Financial Services please visit www.bibby.com.au