Parliament returns after the winter break with a busy legislative agenda, including cybersecurity regulation and disability rights.
Cyber reforms and AICD Principles
Prime Minister Anthony Albanese’s changes to cabinet in late July saw a change in responsibility for Australia’s national cybersecurity portfolio. Tony Burke has taken on the critical Cyber Security and Home Affairs portfolios from Clare O’Neil, who has moved to oversee Housing.
The AICD appreciated the collaborative approach that O’Neil has brought to the cybersecurity portfolio, including her commitment to consultation with directors. We look forward to continuing this work with the new minister.
Cyber reforms continue apace — legislation to support the 2023–30 Australian Cyber Security Strategy via a new Cyber Security Act is imminent. Anticipated reforms include:
A new ransomware payment reporting regime
Provisions to support sharing information with the Australian Signals Directorate and National Cyber Security Coordinator in cyber attacks (“limited use”)
A new National Cyber Incident Review Board to enable lessons from major incidents to be analysed and shared to strengthen resilience. Attorney-General Mark Dreyfus has also flagged that legislation to deal with the Privacy Act Review is on the way. The review’s 116 recommendations include a new direct right of action for individuals, stronger data and privacy obligations and removal of the small business exemption. These are important reforms for all boards to stay across.
The AICD is also updating our flagship Cyber Security Governance Principles. The Principles, developed with the Cyber Security Cooperative Research Centre, are one of our most cited governance resources, with positive feedback across our broad membership.
The update will consider the current threat environment, reforms and guidance from our recent Governing through cyber crisis resource.
We welcome member feedback to inform the update via policy@aicd.com.au.
Government responds to Disability Services Royal Commission
Last month the Australian government released its response to the Disability Services Royal Commission.
The commission made 222 recommendations, many requiring a cross-jurisdiction approach. The government has accepted or accepted in principle 130 recommendations, is giving consideration to 36 more and has noted six. While significant in scope, the response has attracted some criticism from stakeholders seeking more comprehensive national action.
Of particular interest to directors in the sector are:
A new Disability Rights Act and Disability Commission (under consideration)
Safeguarding indicators and expertise (accepted in principle)
Stronger regulatory requirements (accepted in principle, NDIS Standards to be reviewed). Separately, the AICD continues to focus on aged care reforms, with priority being the (in our view, excessive) liability attached to the proposed new responsible persons duty.
The AICD, with other industry bodies, continues to make a strong case against proposed civil and criminal liability.
Directors in the care sectors can access targeted AICD resources at:
Care Governance webinar series
Governing for Quality Aged Care director guide
AICD Care Governance short course (fully updated, with Royal Commissions’ insights).
Climate governance: Reporting, targets and competition laws
Legislation to introduce a new mandatory climate reporting regime is (at time of writing) listed for consideration by Parliament. It will apply in the first instance to large companies and extend across the economy over forward years.
Director resources — including our mandatory reporting guide — and AICD updates on reform progress are on the Climate Governance Initiative website.
Our latest resource is a director guide on climate targets. Principles for Setting Climate Targets has been developed with the Insurance Council and Herbert Smith Freehills, with insurance as a sector case study.
Scope for companies and industries to collaborate on sustainability initiatives is being considered by the Australian Competition and Consumer Commission (ACCC). Competition law constraints have been raised as a roadblock by directors and industry bodies. In July, the ACCC issued draft guidance that seeks to make clear that competition law should not be an insurmountable barrier for sustainability collaborations.
The AICD’s response draws on feedback from directors and stakeholders. While we support regulator guidance as a valuable first step, we have significant concerns with the draft, particularly for SME and NFP sectors. We have encouraged a clearer and more permissive approach. Legislative reform may be necessary to address rigidity in Australia’s competition laws.
Louise Petschler GAICD is General Manager Education & Policy Leadership at AICD.
This article first appeared under the headline 'There’s Work to Do’ in the September 2024 issue of Company Director magazine.
Practice resources — supporting good governance
Examples of the AICD’s contemporary governance practice resources for members:
Climate Governance
- AICD’s free Introduction to Climate Governance e-learning includes insights from leading experts and guidance on governance frameworks.
NFP Governance Principles
- AICD’s flagship good governance principles for NFP boards and directors, updated after extensive consultation. The Principles include practical, real-world guidance on setting strong governance frameworks and practices.
Board Minutes
- AICD and Governance Institute’s joint statement on board minutes provides best practice guidance for directors.
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