Understanding the New Privacy Law Changes in Real Estate

Privacy compliance is no longer just a best practice—it’s now a critical legal requirement for real estate agencies. With new privacy law changes now in effect, agencies must act swiftly to ensure their operations align with the latest legal obligations.

From hefty penalties to greater transparency around AI and data handling, these updates mean real estate businesses must step up their privacy game. Here’s what you need to know and how to ensure your agency stays compliant.

Higher Penalties – Up to $660,000 for Privacy Breaches

Privacy breaches now come with serious financial consequences. The updated laws introduce significantly higher fines, with maximum penalties reaching $660,000 for non-compliance.

What does this mean for real estate agencies?

Failure to secure personal information (tenant, buyer, or vendor data) could lead to fines.
Lack of transparency in data handling could result in enforcement actions.
Inadequate cybersecurity could expose the agency to both legal and financial risk.

If your agency hasn’t reviewed and updated its privacy policies and data security measures, now is the time.

Individuals Can Now Take Legal Action Over Privacy Violations

For the first time, from 10 June 2025 individuals in Australia now have a statutory right to sue if their privacy is seriously invaded.

This means:

Tenants can take legal action if their personal data is misused.
Vendors can challenge the way their information is handled.
Employees can file claims over workplace privacy breaches.

Agencies must have clear privacy policies and procedures in place to mitigate this risk. Any failure to protect personal data could now result in lawsuits and significant legal costs.

AI & Automation – New Transparency Rules

Many real estate agencies rely on AI-driven tools to assist in decision-making, from tenant application approvals to lead generation and prospecting.

Under the new regulations, agencies must clearly disclose:

What personal data is used in automated decision-making (ADM).
Which decisions are made entirely by AI, such as auto-approving tenancy applications.
Which decisions AI influences, even if a human is involved, such as AI-driven property prospecting tools or resume screening for hiring.

This means agencies can no longer use AI behind the scenes without informing clients. If AI tools are part of the business model, they must be explicitly disclosed in the privacy policy which must be in full effect before 10 December 2026.

Offshore Data Sharing – New Compliance Rules

If your agency outsources work to offshore virtual assistants, uses cloud-based software, or stores client data overseas, you must comply with new rules regarding cross-border data flow.

Here’s what has changed:

If the receiving country has privacy laws similar to Australia’s, compliance obligations may be reduced.
If the receiving country does not meet Australian privacy standards, the agency remains fully responsible for protecting the data.

Agencies must conduct due diligence to ensure offshore providers comply with Australian privacy laws—or risk exposure to regulatory penalties and legal claims.

Stronger Data Security Requirements

The updated privacy laws clarify that agencies must take “reasonable steps” to protect personal information.

This includes:

Cybersecurity measures such as strong encryption, firewalls, and multi-factor authentication.
Organisational security, including assigning clear roles for privacy compliance and governance.
Employee training to ensure all staff understand their obligations around data protection.
Regular audits to review how personal data is collected, stored, and accessed.

Data security is now a core legal responsibility. Agencies must have a structured approach to privacy management or risk major compliance failures.

What Your Agency Needs to Do Right Now

Review & update your privacy policy – Make sure it aligns with the new rules.
Assess AI & automation tools – Clearly disclose how they influence decisions.
Check offshore service providers – Ensure they meet Australian privacy standards.
Educate your team – Make privacy compliance a company-wide responsibility.
Conduct a privacy audit – Identify gaps and risks before they become costly mistakes.

Need expert guidance? Apex HR can help your agency navigate these privacy changes.

Get in touch today to ensure your business stays compliant, protected, and ahead of the curve.

Contact Apex HR today for a privacy compliance assessment tailored to your agency.