Te political exemption in the Privacy Act raises public policy questions that the small business operator and employee records do not. It is also an area of law where the common law has developed to protect free speech. The Report undertakes a significant analysis.
The extent of the exemption:
Under the Privacy Act:
- registered political parties are entirely exempt
- under section 7C political representatives (MPs and local government councillors), and their affiliates and the affiliates of registered political parties are exempted from acts and practices done for any purpose in connection with an election, a referendum, or participation in another aspect of the political process.
This means that currently if a registered political party collects, uses or discloses personal information for a purpose unconnected with the political process, it is not required to comply with the Act. Other political entities are only exempt from the Act’s requirements to the extent that they are handling information for purposes connected to the political process under section 7C.
Under this exemption a registered political party can handle personal information other than for a purpose connected to the political process and still be exempted from the Privacy Act provisions. This is an anomaly given the the rationale for the exemption was to encourage freedom of political communication. There has been no reported instances of a political party taking advantage of this situation. That is probably because political parties are focused on collecting information only for political reasons.
Rationale for exemption
The stated rationale for the exemptions was:
- to encourage freedom of political communication and enhance the operation of the electoral and political process in Australia.
- to operate in a manner consistent with the implied freedom of political communication under the Australian Constitution.
While the Australian Law Reform Commission in its Report 108 recognised the special status of political acts and practices under the Constitution as the most compelling reason for exempting political acts and practices of political entities it still concluded that registered political parties should be brought within the scope of the act and the exemption for political entities should be removed to promote public confidence in the political process and remove the advantage which the exemption confers on incumbent political entities.
The Issues Paper sought feedback on whether political acts and practices should continue to be exempted from the operation of some or all of the Australian Privacy Principles.
The Discussion Paper canvassed the approach to regulating political parties under data protection laws in the UK, Canada and New Zealand.
The Report noted that almost all submissions on this exemption considered it was not justifiable and should be narrowed or removed. The OAIC submitted that there was little evidence that data protection laws operating in other countries have had any considerable impact on political parties’ ability to perform their basic democratic roles, including political communication.
The Report proposed amending the definition of ‘organisation’ to include registered political parties, and that they be included within the scope of the exemption in section 7C of the Act. Accordingly registered political parties would be required to comply with the APPs in the handling of personal information, to the same extent as political representatives (and political affiliates) unless exempted by the operation of the exemption in section 7C.
Regarding transparency the Report:
- confirmed there were concerns about transparency in the handling of voters’ information whereby political parties in collecting personal information about voters from a variety of sources such as media and data brokerage services and the electoral rolls, can build large databases with detailed information about voters without their knowledge or consent. They are not required to inform voters of the ways in which their personal information is collected, or specify how it will be used or disclosed.
- considered that greater transparency in relation to political communication may, be consistent with and support the constitutionally-prescribed system of government but serve to protect it citing LibertyWorks Inc v Commonwealth where the High Court found the purpose of the Foreign Influence Transparency Act 2018 intention of making transparent the involvement of foreign interests in political communication , was consistent with the freedom of political communication and ‘reinforces the freedom despite doing so by burdening some political communication.’
- proposed that the Act be amended to require political entities to be more transparent about how they handle personal information by requiring entities that are covered by the political exemption in section 7C to have a privacy policy in accordance with APP 1.
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