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Third Party Data Sharing Agreement Template for Australia

A comprehensive legal agreement governed by Australian law that establishes the terms and conditions for sharing data between organizations. This document addresses key requirements under the Privacy Act 1988 and Australian Privacy Principles, defining the parameters for data transfer, usage, security, and privacy compliance. It includes detailed provisions for data handling, breach notification procedures, and risk allocation between parties, while ensuring compliance with Australian federal and state privacy regulations. The agreement is structured to protect both the data provider and recipient while maintaining transparency and accountability in data sharing operations.

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What is a Third Party Data Sharing Agreement?

The Third Party Data Sharing Agreement is essential in today's data-driven business environment where organizations regularly need to share data with external parties while maintaining compliance with Australian privacy laws and regulations. This document is typically used when businesses need to establish formal arrangements for sharing customer data, operational data, or other sensitive information with third parties such as service providers, technology partners, or data processors. It addresses crucial aspects including data security measures, privacy compliance, breach notification procedures, and risk allocation. The agreement must comply with the Privacy Act 1988, Australian Privacy Principles, and relevant state legislation, making it suitable for businesses operating in Australia who need to protect their interests while sharing data with external parties. It's particularly relevant given the increasing focus on data protection and privacy in the Australian regulatory landscape.

What sections should be included in a Third Party Data Sharing Agreement?

1. Parties: Identification of all parties to the agreement, including their legal names, ABNs, and registered addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the data sharing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including technical terms and data-related concepts

4. Scope of Agreement: Defines the specific data to be shared, purposes for sharing, and any restrictions on use

5. Data Sharing Terms: Details of how and when data will be shared, including format, frequency, and transmission methods

6. Privacy and Security Obligations: Compliance requirements with Privacy Act, APPs, and security standards for data protection

7. Data Quality and Management: Standards for data accuracy, currency, and maintenance responsibilities

8. Confidentiality: Obligations regarding confidential information handling and protection

9. Security Breach and Incident Response: Procedures for handling data breaches and compliance with the NDB scheme

10. Liability and Indemnities: Allocation of risk and responsibility between parties

11. Term and Termination: Duration of agreement, renewal terms, and termination rights

12. Post-Termination Obligations: Requirements for data handling after agreement ends

13. General Provisions: Standard contract clauses including governing law, dispute resolution, and amendment procedures

What sections are optional to include in a Third Party Data Sharing Agreement?

1. International Data Transfers: Required when data may be transferred outside Australia, addressing cross-border data flow requirements

2. Industry-Specific Compliance: Include when sharing data in regulated industries like healthcare or financial services

3. Audit Rights: Optional section granting rights to audit data handling practices, recommended for high-risk data sharing

4. Data Monetization: Include when there are commercial arrangements around data usage

5. Intellectual Property Rights: Required when shared data involves IP considerations or derived data products

6. Service Levels: Include when specific performance metrics for data sharing need to be maintained

7. Business Continuity: Optional section for critical data sharing arrangements requiring disaster recovery plans

What schedules should be included in a Third Party Data Sharing Agreement?

1. Schedule 1 - Data Specification: Detailed technical specifications of data elements to be shared, including format and structure

2. Schedule 2 - Security Standards: Specific security requirements, protocols, and standards to be maintained

3. Schedule 3 - Service Levels: Detailed metrics and KPIs for data sharing performance if applicable

4. Schedule 4 - Fee Schedule: If applicable, details of any fees or costs associated with data sharing

5. Schedule 5 - Approved Purposes: Comprehensive list of approved uses for the shared data

6. Appendix A - Data Flow Diagram: Technical diagram showing how data flows between parties

7. Appendix B - Contact Matrix: Key contacts and escalation procedures for operational and emergency situations

8. Appendix C - Incident Response Plan: Detailed procedures for handling data breaches and security incidents

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

tiktok˰

Sector

Cost

Free to use

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