The General Data Protection Regulation (GDPR) is a comprehensive data protection law implemented in the European Union (EU) to safeguard the privacy and rights of individuals concerning their personal data. Although GDPR is an EU regulation, its impact extends beyond European borders and is particularly relevant to Australian businesses due to global data sharing and emerging data protection laws in various countries.

What is GDPR?
GDPR is a legal framework that came into effect on May 25, 2018, replacing the Data Protection Directive of 1995. Its primary objective is to empower individuals with greater control over their personal data and to establish clear guidelines for businesses regarding the collection, processing, and storage of personal information.

Consequences of Non-Compliance:
Failure to comply with GDPR can result in severe consequences for businesses, including hefty fines and damage to their reputation. Penalties for non-compliance can go up to €20 million or 4% of a company's global annual turnover, whichever is higher. Additionally, non-compliant organisations may face legal action from individuals whose data has been mishandled.

GDPR Compliance Checklist for Australian Businesses:
As GDPR principles align with best practices for data protection, Australian businesses can prepare for potential regulations by following this checklist:

1. Data Mapping: Identify all personal data you collect, store, and process. Document the purpose and legal basis for each data category.

2. Consent Management: Obtain clear and explicit consent from individuals before collecting their data. Ensure a straightforward opt-in and opt-out process.

3. Data Minimisation: Collect only the data necessary for the intended purpose and limit access to authorised personnel.

4. Data Security: Implement robust security measures to protect personal data from breaches. Regularly update and test security protocols.

5. Data Protection Impact Assessments (DPIAs): Conduct DPIAs for high-risk processing activities. Address and mitigate identified risks.

6. Data Subject Rights: Educate employees on data subjects' rights, including the right to access, rectify, or delete their data. Establish procedures for responding to data subject requests.

7. Data Transfer: Ensure that international data transfers comply with GDPR requirements, such as Standard Contractual Clauses (SCCs) or binding corporate rules.

8. Data Breach Response: Develop a clear procedure for reporting and managing data breaches, including notifying affected individuals and relevant authorities within 72 hours.

9. Data Protection Officer (DPO): Appoint a DPO responsible for ensuring GDPR compliance and providing guidance to the organisation.

10. Documentation: Maintain detailed records of data processing activities, policies, and procedures.

Implications for Australian Businesses:
While GDPR is an EU regulation, its influence extends globally. Australian businesses dealing with EU residents' data or conducting business in the EU should comply with GDPR to avoid hefty fines and maintain a competitive advantage. Moreover, Australia is actively considering its own data protection regulations, which may draw inspiration from GDPR.

Best Practice for Australian Businesses:
To operate at the highest level of data protection hygiene:

1. Stay Informed: Continuously monitor evolving data protection laws in both Australia and other key markets you operate in.

2. Implement GDPR Best Practices: Adopt GDPR compliance measures even if not legally required, as they align with international standards.

3. Data Ethics: Prioritise data ethics and transparent data handling practices to build trust with customers.

4. Regular Training: Educate employees on data protection principles to foster a culture of compliance.

5. Data Privacy Impact: Conduct regular assessments of your data handling processes to identify and address potential risks.

GDPR serves as a benchmark for data protection globally, and Australian businesses can benefit from adhering to its principles. Preparing for potential future regulations and adopting best practices will not only mitigate risks but also enhance your business's reputation as a responsible custodian of personal data in the digital age.