Why the SOCI Act Matters for Mid-Sized Australian Enterprises in 2025

Why the SOCI Act Matters for Mid-Sized Australian Enterprises in 2025

Cybersecurity is no longer just a concern for major corporations and government departments. In 2025, mid-sized Australian businesses are increasingly becoming targets of cyber threats, particularly those operating within sectors considered critical to the country’s infrastructure.

This shift in the threat landscape has brought the soci act—Australia’s Security of Critical Infrastructure Act—into sharper focus.

Many mid-sized enterprises still believe the SOCI Act applies only to large organisations. However, the expanded scope of the legislation now includes a broader range of entities and industries, making it crucial for growing businesses to understand its relevance and respond accordingly.

What Is the SOCI Act?

The SOCI Act, originally enacted in 2018 and amended in 2021, aims to protect Australia's critical infrastructure assets from cyber attacks, espionage, and foreign interference.

It empowers the federal government to identify key infrastructure sectors and enforce measures to ensure these assets are secure and resilient.

Sectors covered under the SOCI Act include:

• Energy
• Communications
• Banking and finance
• Data storage and processing
• Defence
• Food and grocery
• Healthcare and medical
• Water and sewerage
• Transport
• Higher education and research
• Space technology

Why Mid-Sized Enterprises Are Now in Focus

The SOCI Act originally applied to large-scale infrastructure providers. However, updates to the legislation now mean that any business involved in a supply chain, data storage, digital services, or subcontracting with critical infrastructure providers may also be required to comply.

This has placed mid-sized businesses squarely in the spotlight, especially those providing IT services, managed infrastructure, software solutions, logistics, or cloud storage.

Failure to comply with SOCI Act obligations can result in financial penalties, reputational damage, and loss of contracts—especially for businesses servicing government or regulated industries.

Key Requirements Under the SOCI Act

For mid-sized businesses that fall under its scope, the SOCI Act introduces several key obligations:

1. Critical Infrastructure Asset Registration
2. Businesses must report their assets to the government if they are deemed part of the critical infrastructure ecosystem.
3. Mandatory Cyber Incident Reporting
4. Organisations must report cyber incidents within a tight timeframe—usually within 12 to 72 hours—depending on the severity of the incident.
5. Risk Management Program
6. Companies are required to implement a comprehensive risk management program that includes cybersecurity, personnel security, physical security, and supply chain risk mitigation.
7. Government Intervention Powers
8. In extreme cases, the federal government has the authority to intervene in a business’s operations to prevent or respond to national cyber threats.

Why the SOCI Act Matters for Business Leaders

Understanding the SOCI Act is no longer optional for mid-sized businesses operating in or alongside critical sectors. Here’s why business leaders should take it seriously:

1. Cybersecurity Is Now a Legal Responsibility

The SOCI Act legally obligates certain organisations to take reasonable steps to protect infrastructure and data. Ignorance of the law does not exempt businesses from penalties or government scrutiny.

2. Your Business Reputation Is on the Line

Data breaches or compliance failures under the SOCI Act can result in media attention, client mistrust, and reputational damage, particularly for companies servicing government departments or regulated clients.

3. Competitive Advantage Through Compliance

Businesses that proactively align with the SOCI Act are more likely to win contracts, strengthen client relationships, and build trust with partners—especially in industries where cybersecurity maturity is now a selection criterion.

4. Government and Client Expectations Are Rising

As the threat landscape evolves, both government bodies and corporate clients are expecting higher levels of cyber resilience and transparency. SOCI Act compliance shows that your business takes security and continuity seriously.

How Mid-Sized Businesses Can Prepare

If you're unsure whether your business falls under the SOCI Act, the first step is to conduct a compliance assessment. Here’s how to get started:

• Review Your Client Base and Sector
• If you're servicing critical sectors or supplying services to regulated industries, you may already be in scope.
• Perform a Cyber Risk Audit
• Identify gaps in your current cybersecurity measures, especially around incident detection, response, and reporting.
• Develop a Risk Management Program
• Include cybersecurity protocols, supply chain risk assessments, and internal controls.
• Establish Incident Response Procedures
• Ensure your team knows how to report cyber incidents promptly and effectively.
• Consult a Cybersecurity Expert
• Work with professionals who understand both the technical and regulatory requirements of the SOCI Act.

The SOCI Act represents a pivotal shift in how Australia addresses cybersecurity at a national level.

For mid-sized enterprises, especially those connected to critical infrastructure or supply chains, it’s more than a legal obligation—it’s a business-critical strategy for resilience, trust, and long-term growth.