Australia just made cybersecurity history.
As of July 1, any business operating in Australia with revenue over AUD 3 million (around US$1.9 million) must report ransomware attacks and cyber extortion payments within 72 hours. That includes crypto, cash, goods, and even services. If they pay a ransom in any form, they have to tell the government. Or risk big penalties.
This is the first law of its kind anywhere in the world, but it won’t stay that way. Other countries are watching closely. The EU, UK, and US are already exploring similar rules. If you’re a Cloud Service Provider (CSP) with customers or infrastructure in Australia—or anywhere on the planet—this is your wake-up call.
Enterprise IT leaders must also take note and understand that their CSPs and MSPs are key to ensuring timely compliance.
Cloud providers are involved and at risk
For Cloud platforms, this changes the game. If your infrastructure is involved in a ransomware incident, you’re now part of a regulated response process.
Customers are going to look to you for help. Not just to recover data or restore access—but to prove what happened, when it happened, and how fast it was reported.
This is new territory.
Until now, most Cloud service agreements have treated ransomware as the customer’s problem: you offer the platform, they secure their workloads.
That’s not going to fly anymore.
Security isn’t a feature—it’s the product
Cloud providers need to step up their incident readiness. That means:
· Better detection tools built into your stack
· Logs that are regulator-friendly
· Fast access to forensics data
· Secure communication channels during a crisis
· A clear plan for how customers can involve you in response and reporting
This isn’t just about compliance—it’s a trust issue. Customers need to know you’ve got their back if things go wrong. The providers who offer real support during a ransomware event will win more business. The ones who don’t? Not so much.
Build it in, don’t just bolt it on
There’s a massive opportunity here. The smart Cloud providers are already turning compliance into a product feature.
This means:
· Security bundles with reporting dashboards
· “Ransomware-ready” recovery packages
· Automatic incident logging with evidence chains
· Pre-set reporting workflows for local regulations
Offering this kind of built-in support could make the difference between getting the next enterprise deal—or losing it to a competitor who does.
Customers will demand answers
Enterprise IT teams are feeling the pressure too. Ransomware isn’t just an IT problem anymore. It’s legal. It’s reputational. It’s often a board-level issue.
If a client decides to pay a ransom—because their business is offline, or data is leaking—they now need to loop in the government. Fast.
And they’re going to ask you, the Cloud provider, for:
· Logs
· Proof of activity
· Secure backups
· Clarity on where responsibility lies
They’ll also want to know how you’ll work with their incident response teams, legal counsel, and cyber insurers. You need answers ready.
Rewriting the shared responsibility model
Ransomware has blurred the shared responsibility model.
If a ransom payment happens because of a vulnerability in your infrastructure—or even because recovery from your backups failed—customers will expect more than a shrug.
It’s time to revisit your documentation, your SLAs, and your support playbooks. Define what’s in your scope. Be clear about what happens in the first 24 hours of an incident. And make sure your clients can use your platform to build a reporting-compliant response plan.
Smaller providers need to play catch-up
This will hit small and mid-sized CSPs the hardest. Big players might already have the legal, security, and PR muscle to handle ransomware reporting.
But regional or niche providers will need to move quickly in establishing procedures they may not even have yet.
That could mean:
· Partnering with MSSPs (Managed Security Service Providers)
· Offering co-managed incident response
· Rolling out new compliance support services
Being small doesn’t mean you can’t compete—but you have to be fast, transparent, and security-forward.
Multinational? You’re already in scope
If you’re operating anywhere in Australia—or serve customers who are—you’re already affected. The law applies based on business presence, not HQ location.
So, if you’re a US- or EU-based CSP with Australian customers or data centers, you need to pay attention. This law might be local, but the impact is global.
And don’t count on it staying unique. The EU’s NIS2 directive is about to expand reporting obligations across sectors. The UK is eyeing similar laws. In the US, CISA is pushing for more disclosure and coordination.
This is where Cloud security becomes a differentiator
The market for Cloud services is more competitive than ever. Everyone’s racing to offer faster speeds, lower latency, more AI integrations.
But now, security and compliance are going to be deal-breakers.
If you can show your platform supports ransomware response, forensic clarity, and regulatory compliance, you’re going to stand out. You’ll become the platform that enterprise IT can trust. Not just for scale, but for survivability.
It’s about resilience, not just uptime
We’re past the point where cybersecurity was a backend issue. This is front-and-center business continuity.
Being able to bounce back from a ransomware hit—and prove you did it right—is just as important as avoiding downtime in the first place.
CSPs that help customers plan, prepare, and comply will win. Those that don’t will be left behind.
What to do next
If you’re a CSP, here’s what should be on your radar right now:
· Review your incident response playbooks. Include ransomware.
· Make sure your logs are detailed, accessible, and secure.
· Train your support teams on how to handle payment reporting questions.
· Work with your legal team to define your role in reporting events.
· Talk to your customers. See what they need. Build it into your offerings.
If you’re a corporate IT leader, then your legal and compliance teams should be all over this—but better safe than sorry. Speak to your CSPs and/or MSPs to ensure they can provide everything you need, when you need it, and without exposing additional information if security has been breached.
Australia has lit the fuse
This law is a sign of what’s coming. Governments around the world are tired of being in the dark when ransom money changes hands. They want visibility. Fast.
And they’re starting to legislate for it.
If you’re in the Cloud business, you’re not just a service provider anymore: you’re a resilience partner. You’re part of your customers’ last line of defence—and their first step toward compliance.
