As of 29 May 2025, the requirement on businesses to report ransomware payments they make has come into effect.
What is the Requirement?
If a reporting business entity becomes impacted by a cyber security incident and ends up making a ransomware payment in response to the incident, the business must report the ransomware payment to the designated government agency within 72 hours after making the payment or becoming aware that the payment was made. Entities who do not produce a satisfactory report within the required time can be liable to a civil penalty of almost AU$20,000.
Who Does it Apply to?
'Reporting business entities' – generally those with over AU$3 million turnover. Certain entities under the Security of Critical Infrastructure Act 2018 are also within scope.
Who do you Produce the Report to?
The Australian Signals Directorate (ASD) is the designated Commonwealth body and has an online form for reporting the payments.
What Happens to the Report?
There are also restrictions on the ASD and other government agencies from using the report for other purposes (such as in investigating or enforcing a breach of the Privacy Act in connection with the relevant incident).
Final Thoughts
We note that the ASD urges businesses to never pay a ransom, as there is nothing keeping cyber criminals from honouring their word. Despite this, businesses may find themselves in circumstances in which this sound advice may not always be practical, and the legislation reflects the reality that such payments are often made. According to a McGrathNicol survey, the average cyber ransom payment cost Australian businesses AU$1.35M in 2024 with only 1 in 10 businesses saying they would not pay under any circumstances.
Above all, this new reporting requirement reinforces the importance of conducting cyber health checks and maintaining an updated Data Breach Response Plan.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
