Mandatory Ransomware Reporting Australia: What the New Law Means for Your Business

On 30 May 2025, the Cyber Security (Ransomware Payment Reporting) Rules 2025 commenced, making Australia one of the first countries in the world to legally require businesses to report ransomware payments to the government within 72 hours. If your business has an annual turnover of $3 million or more, or you are responsible for any critical infrastructure asset, the mandatory ransomware reporting Australia regime now applies to you. Get it wrong and you face fines, regulatory scrutiny, and potentially criminal exposure. Get it right and you unlock “limited use” protections that can shield your business from downstream enforcement. Most Australian SMBs have no idea this law exists. Here is what you need to know. What the Mandatory Ransomware Reporting Australia Law Actually Requires Under Part 3 of the Cyber Security Act 2024 (Cth), reporting business entities must submit a formal report to the Australian Signals Directorate (or another designated Commonwealth body) within 72 hours of: A “reporting business entity” includes: The report must include specific information about the incident, the extortion demand, the payment, and the parties involved. Why the Government Introduced This Obligation The Australian government’s rationale is straightforward. Before the law, the vast majority of ransomware incidents in Australia went unreported, meaning: The law creates a national dataset that the ASD, the National Cyber Security Coordinator, and the Cyber Incident Review Board can use to protect other Australian businesses. The “Limited Use” Safeguard You Need to Understand The law includes an important protection known as “limited use.” Information reported under the mandatory ransomware reporting Australia regime generally cannot be used to investigate or enforce against the reporting business, except for: This means cooperating with the law actually protects your business in most regulatory contexts. Failing to report, however, exposes you to enforcement with no protection. What This Means Practically for Your Incident Response Plan Every Australian SMB with turnover above $3 million needs to update its incident response plan to include: Recommended Link: Business Continuity and Incident Response Planning Should You Actually Pay the Ransom? The mandatory ransomware reporting Australia law does not prohibit paying ransoms, but paying is almost always the wrong decision: The Australian government’s position, and the position of the ASD, is that prevention, tested backups, and structured response are always the better option. Recommended Link: Business Cyber Security Policies and Legal Compliance Is Your Business Ready to Report Inside 72 Hours?The mandatory ransomware reporting Australia regime is now live. Non-compliance carries real penalties and real exposure. Frequently Asked Questions Q: What happens if I do not report a ransomware payment?A: You face civil penalties and potentially criminal exposure, depending on circumstances. You also lose the “limited use” protections that would otherwise apply. Q: Does the mandatory ransomware reporting Australia law apply to small businesses under $3 million?A: Not currently for the turnover threshold, but if you are responsible for a critical infrastructure asset, you must still comply regardless of size. Voluntary reporting is also encouraged for all businesses. Q: Does reporting the payment protect me from OAIC privacy enforcement?A: No. Privacy Act obligations around notifiable data breaches are separate. You may need to report to both the ASD (for the payment) and the OAIC (for the data breach). The mandatory ransomware reporting Australia law marks a significant shift in how ransomware is treated in this country. It is no longer a quiet, negotiated problem handled between victims and criminals. It is a national intelligence matter with formal obligations. Every Australian SMB above $3 million in turnover needs to know the rules, update its plans, and decide now, not during the crisis, how it will respond when the ransom demand arrives. (We are not looking to replace your current provider, just offering an alternative perspective) Written by Neil Frick Sources & References