Does the Privacy Act affect due diligence if I am selling an exempt small business?

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Question: Does the Privacy Act affect due diligence if I am selling an exempt small business?

Answer: If a small business is exempt from the Privacy Act the due diligence process will not be affected.

A sale of business assets may result in both the vendor and the purchaser becoming subject to the Privacy Act if personal information is exchanged as part of the business assets (for example, sale of a customer database). Generally speaking, the Privacy Act will only apply after the completion of the sale. For more information see Information Sheet 16-2002: Application of key NPPs to due diligence and completion when buying and selling a business.

If a prospective purchaser is already covered by the Privacy Act, they will need to comply with it when conducting due diligence.