Who must comply with APP 2 — anonymity + pseudonymity for individuals?

Where reasonable, individuals must be able to deal with you anonymously or under a pseudonym.

APP 2 requires APP entities to provide individuals with the option of dealing anonymously or under a pseudonym, unless impracticable or required by law. Limits the default-required identification many businesses impose unnecessarily.

Applies when the business has APP-entity status (turnover > $3M or a s 6D(4) carve-out).

How the regulator frames it: All APP entities.

What triggers it: Engaging with individuals where identification not strictly required.

Jurisdiction: Commonwealth law, so the test is the same in every state and territory.

Outcome across the 35 industries Rules Mate maps (11 of 35: yes; 24 of 35: depends on size or structure).

Structure does not change the answer across all industries: for every structure the answer is "depends on size or structure".

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

• Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: applies. AML/CTF reporting entity — covered by the Privacy Act for AML/CTF activities (s 6E(1A))
• Pty Ltd company in fintech (non-bank) with 6–19 employees, turnover $1M–$3M: does not apply. Requires APP-entity status (turnover > $3M or a s 6D(4) carve-out)

Starting from a small or large professional services company that does not otherwise meet the test, each of these single facts changes the engine's answer:

• The business deals in crypto-assets or runs a digital currency exchange: it then applies (AML/CTF reporting entity — covered by the Privacy Act for AML/CTF activities (s 6E(1A))).
• The business is a registered NDIS provider: it then applies (provides a health service and holds health information — not covered by the small business exemption (Privacy Act s 6D(4)(b))).
• The business is an approved aged care provider: it then applies (provides a health service and holds health information — not covered by the small business exemption (Privacy Act s 6D(4)(b))).
• The business supplies government customers: it then applies (government customer — contracted service providers to the Commonwealth are covered (Privacy Act s 6D(4)(e))).

When due

Continuous.

Frequency

Ongoing

Evidence to keep

Workflow analysis; consent + opt-out options; identifiers minimised.

Status

Current

Priority

Medium

Maximum penalty: Same penalty regime as broader Privacy Act breaches.

Self-assessment. Authority: Privacy Act 1988 (Cth) ss6D, 33C, Sch 1 APP 1; OAIC Guide to privacy regulatory action Ch 9.

Frequency: Ongoing. No mandated periodic audit. APP 1 requires an up-to-date privacy policy and reasonable practices and procedures.

Who can perform it: The entity itself. The OAIC may conduct a privacy assessment (s33C) at its discretion and can compel documents; you cannot commission an OAIC assessment as an audit.

If this obligation applies to you, so do these 4: the engine uses the same rule for each.

• Notifiable Data Breach (NDB) scheme
• Publish a Privacy Policy that meets APP 1
• Provide an APP 5 collection notice at or before collection
• APP 12 & APP 13 access and correction requests

• APP 3 collection of sensitive information: APP 3 bars collecting sensitive information — health, race, religion, sexual orientation and more — without consent. What counts as sensitive, the exceptions and penalties.
• Automated decision-making transparency in your privacy policy (APP 1.7–1.9): From 10 December 2026, APP entities that use computer programs to make or substantially assist decisions that significantly affect individuals must say so in their APP privacy policy.
• APP 7 direct marketing: consent, opt-out & when you can't message (2026): APP 7 restricts using or disclosing personal information for direct marketing and requires a simple opt-out — when it applies, the exceptions and penalties.
• APP 8 cross-border disclosure: Before disclosing personal information overseas, APP 8 requires reasonable steps so the recipient meets the APPs — unless an exception applies. Steps and exceptions.
• Children's Online Privacy Code 2026: OAIC developing a mandatory children's online privacy code — must be registered by 10 December 2026 (commencement not yet fixed).

Across the 1,890 business profiles Rules Mate evaluates, these obligations apply to most of the businesses this one applies to, and are far more common among them than among businesses generally:

• APP 7 direct marketing: consent, opt-out & when you can't message (2026): applies to 100% of the same businesses (1.5× the overall rate)
• Privacy Act Reform — information controllers regime (proposed Tranche 2): applies to 100% of the same businesses (1.5× the overall rate)

Rules Mate tracks 20 published obligations tagged "privacy", 3 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 4 of those apply outright. This obligation is rated medium priority, and is an ongoing duty.

Regulated by Office of the Australian Information Commissioner.

OAIC: Privacy and freedom of information regulator. Administers the Privacy Act 1988, the Notifiable Data Breaches scheme, and the Australian Privacy Principles.

• Office of the Australian Information Commissioner

Privacy Act 1988: Federal privacy Act.

• Privacy Act 1988

Free tools that help with this obligation:

• Privacy Act 2026 readiness
• NDB notification timer
• Marketing compliance check (Spam Act)