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The Data Processing Agreement Addendum is essential for organizations in Australia that engage third parties to process personal information on their behalf. This document supplements existing service agreements by specifically addressing data protection requirements under the Privacy Act 1988 and Australian Privacy Principles. It becomes necessary when an organization (the data controller) engages a service provider (the data processor) to handle personal information, ensuring both parties understand their obligations regarding data security, confidentiality, breach notification, and compliance with Australian privacy laws. The addendum is particularly crucial for cross-border data transfers and when engaging with cloud service providers or other third-party processors.

1. Parties: Identification of the data controller and data processor, including full legal names and contact details

2. Background: Context of the agreement, reference to the main agreement this addendum relates to, and the purpose of the data processing activities

3. Definitions: Key terms used in the agreement, including 'Personal Information', 'Processing', 'Data Controller', 'Data Processor', 'Privacy Laws' and other relevant terms

4. Scope and Purpose of Processing: Detailed description of the data processing activities, types of personal information involved, and permitted purposes

5. Obligations of the Data Processor: Core responsibilities including processing only on documented instructions, maintaining confidentiality, implementing security measures, and assisting with data subject requests

6. Data Security Measures: Specific technical and organizational security measures required to protect personal information

7. Sub-processors: Conditions and requirements for engaging sub-processors, including approval processes

8. Data Breach Notification: Procedures and timeframes for reporting data breaches in accordance with the Notifiable Data Breaches scheme

9. Audit Rights: Controller's rights to audit the processor's compliance and processor's obligations to demonstrate compliance

10. Term and Termination: Duration of the addendum and specific termination rights related to data processing

11. Return or Deletion of Data: Obligations regarding personal information upon termination of services

12. Governing Law and Jurisdiction: Confirmation of Australian law as governing law and jurisdiction for disputes