Privacy (Private Sector) Amendment Regulations 2003 (No. 1)

Administered by Attorney-General's Department

Legislation au F2003B00339 Regulations Not in force Legislative Instrument

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Privacy (Private Sector) Amendment Regulations 2003 (No. 1) 2003 No. 322

EXPLANATORY STATEMENT

STATUTORY RULES 2003 NO. 322

PRIVACY (PRIVATE SECTOR) AMENDMENT REGULATIONS 2003 (NO. 1)

The Privacy Act 1988 (the Act) establishes, among other things, the National Privacy Principles (NPPs) which regulate the collection, use, disclosure and storage of personal information by private sector organisations.

NPP 7.1 provides that a private sector organisation must not adopt as its own identifier of an individual an identifier of the individual that has been assigned by:

(a)       a Commonwealth agency; or

(b)        an agent of a Commonwealth agency acting in its capacity as agent; or

(c)        a contracted service provider for a Commonwealth contract acting in its capacity as contracted service provider for that contract.

NPP 7.1A provides that NPP 7.1 does not apply to the adoption by a prescribed organisation of a prescribed identifier in prescribed circumstances.

NPP 7.2 provides that a private sector organisation must not use or disclose an identifier assigned to an individual by a Commonwealth agency, or by an agent or contracted service provider to that agency, except where:

(a)       the use or disclosure is necessary for the organisation to fulfil its obligations to the agency; or

(b)       the use or disclosure is in support of measures detailed in NPP 2.1(e) to 2.1(h) inclusive to lessen or prevent a threat to the health or safety of an individual or the public, is required or authorised by law, or is in support of law enforcement or prosecution activities; or

(c)       the use or disclosure is by a prescribed organisation of a prescribed identifier in prescribed circumstances.

Subsection 100(1) of the Act provides that the GovernorGeneral may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The purpose of these Regulations is to authorise the adoption, use and disclosure of Commonwealth employee payroll numbers by two private sector superannuation bodies for the purposes of providing Commonwealth employees with superannuation services. These bodies are AvSuper Pty Ltd and the Australian Government Employees Superannuation Trust (AGEST).

AvSuper is the superannuation organisation for employees of Airservices Australia and the Civil Aviation Safety Authority. As part of its normal operations, AvSuper adopts, uses and discloses payroll numbers of these employees and has done so since its establishment in 1991.

AGEST serves as a superannuation body for individuals who are prevented from joining the mainstream Commonwealth or Public Sector Superannuation Schemes, including contractors and shortterm employees, or those who voluntarily wish to engage in salarysacrifice arrangements not permitted by those schemes. As part of its normal operations, AGEST uses and discloses payroll numbers of these employees. AGEST currently provides superannuation services to the employees of around 180 Commonwealth agencies.

The adoption, use and disclosure of the Commonwealth payroll numbers by AvSuper and AGEST is, in each case, only be for the benefit of the individual concerned. It enables superannuation deductions to be correctly attributed to the individual superannuation fund accounts of each individual employee as a routine procedure without the necessity of requiring every individual employee to manually confirm the deductions each time salary is paid. The practices of AvSuper and AGEST allow an individual's superannuation benefits to be calculated accurately and to be transferred to other superannuation funds when an employee's status changes, such as when an employee becomes a continuing member of the Australian Public Service and provision of his or her superannuation services moves from AGEST to the Public Sector Superannuation Scheme as a result.

Subsection 100(2) of the Act provides that before the GovernorGeneral makes regulations for the purposes of NPP 7.1A or NPP 7.2(c) prescribing an organisation, identifier and circumstances, the AttorneyGeneral must be satisfied that affected agencies have agreed to the adoption, use or disclosure, that those agencies have consulted the Privacy Commissioner, and that the adoption, use or disclosure can only be for the benefit of the individual concerned. The AttorneyGeneral is satisfied of these matters in relation to the adoption, use or disclosure of Commonwealth payroll numbers by AvSuper and AGEST.

Details of the Regulations are set out in the Attachment.

The Regulations commence on gazettal.

PRIVACY (PRIVATE SECTOR) AMENDMENT REGULATIONS 2003 (NO. 1)

Regulation 1 describes how the Regulations are to be cited.

Regulation 2 provides that the Regulations commence on gazettal.

Regulation 3 provides that the Privacy (Private Sector) Regulations 2001 (the Principal Regulations) are amended in accordance with Schedule 1 of the Regulations.

The regulations add Part 3 to the Principal Regulations to authorise exceptions to National Privacy Principle 7.1 and 7.2.

Schedule 1, Items 1 and 2 insert titles to describe the existing parts of the Principal Regulations.

Schedule 1, Item 3 inserts a new Part 3, titled National Privacy Principles, in the Principal Regulations. The new Part defines the agencies subject to the Part and other relevant entities, authorises AvSuper's adoption of payroll numbers assigned by Airservices Australia and the Civil Aviation Safety Authority, and authorises the use and disclosure by AvSuper and the Australian Government Employees Superannuation Trust of payroll numbers assigned by agencies.

Schedule 1, Item 4 inserts a new schedule 2 in the Regulations listing the bodies defined as agencies for the purposes of Part 3 of the Regulations.

 

Overview

The Privacy (Private Sector) Amendment Regulations 2003 (No. 1) were introduced to amend the Privacy (Private Sector) Regulations 2001 under the authority of the Privacy Act 1988. Enacted by the Australian Parliament, these Regulations aim to address the specific need for certain private sector organisations to use Commonwealth employee payroll numbers for superannuation services. The primary problem these Regulations sought to resolve was the inefficiency and potential inaccuracies in superannuation services due to the necessity for employees to manually confirm deductions each time their salary is paid. This inefficiency was particularly pertinent for organisations like AvSuper Pty Ltd and the Australian Government Employees Superannuation Trust (AGEST) that provide superannuation services to Commonwealth employees, including contractors and short-term employees. By authorising these organisations to adopt, use, and disclose Commonwealth payroll numbers, the Regulations facilitate the accurate calculation and transfer of superannuation benefits, ensuring they are correctly attributed to individual superannuation accounts and seamlessly transferred when an employee's status changes. This change is intended to benefit the individual concerned by streamlining the superannuation process.

Scope and Application

The Privacy (Private Sector) Amendment Regulations 2003 (No. 1) amends the Privacy (Private Sector) Regulations 2001 under the Privacy Act 1988. These regulations primarily address the adoption, use, and disclosure of Commonwealth employee payroll numbers by two specific private sector superannuation bodies: AvSuper Pty Ltd and the Australian Government Employees Superannuation Trust (AGEST). The intent is to allow these entities to use the Commonwealth payroll numbers for the provision of superannuation services to Commonwealth employees, a practice that has been ongoing since 1991 for AvSuper and for AGEST in its service to employees who cannot join mainstream superannuation schemes. The regulations ensure that the use of these numbers is strictly for the benefit of the individual employee, facilitating accurate superannuation deductions and transfers. The amendments are applicable to the geographic and jurisdictional reach of the Commonwealth, specifically targeting the private sector entities involved in superannuation services. These regulations are an exception to the National Privacy Principles (NPP) 7.1 and 7.2, which generally prohibit private sector organisations from adopting or using identifiers assigned by Commonwealth agencies. The regulations stipulate that the Attorney-General must be satisfied that the affected agencies have agreed to the adoption, use, or disclosure, have consulted the Privacy Commissioner, and that such actions are for the individual’s benefit. The regulations commence on gazettal, providing immediate effect from the date of publication in the Commonwealth of Australia Gazette.

Key Provisions

The main operative sections of the Privacy (Private Sector) Amendment Regulations 2003 (No. 1) focus on making specific exceptions to the National Privacy Principles (NPPs) under the Privacy Act 1988 (section 100). Regulation 3 amends the Privacy (Private Sector) Regulations 2001 to include a new Part 3, which provides exceptions to NPP 7.1 and 7.2. Specifically, this regulation authorises the adoption, use, and disclosure of Commonwealth employee payroll numbers by two private sector superannuation bodies: AvSuper Pty Ltd and the Australian Government Employees Superannuation Trust (AGEST). This exception is permitted only if the practices are for the benefit of the individual concerned and are necessary for the provision of accurate superannuation services. The obligations imposed by these regulations on AvSuper and AGEST are stringent. They must ensure that the adoption, use, and disclosure of payroll numbers are strictly for the benefit of the individual employee and that these actions facilitate the accurate calculation and transfer of superannuation benefits. Additionally, before these regulations could be enacted, the Attorney-General had to be satisfied that the affected agencies agreed to the practices, had consulted with the Privacy Commissioner, and that the practices were solely for the benefit of the individual. The regulations further mandate that the adoption, use, and disclosure of these identifiers must align with the principles outlined in the Privacy Act. Failure to comply with these regulations can result in severe consequences. Under the Privacy Act 1988, non-compliance with the NPPs can lead to significant penalties. For serious or repeated breaches, organisations can face civil penalties of up to $2.1 million for corporations and $210,000 for individuals. Furthermore, depending on the severity of the breach, criminal penalties can also be imposed. The maximum penalties for using or disclosing personal information in a way that contravenes the NPPs include fines of up to $420,000 for corporations and $42,000 for individuals, in addition to potential imprisonment terms for responsible individuals. These penalties underscore the importance of adhering to the regulations and maintaining the integrity of personal information.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.