Privacy boost after Optus 'wake-up call'

The potential changes are in response to a massive data breach at telco Optus, which exposed the personal data of around 10 million current and former customers.

The information included names, birth dates, phone numbers and addresses, as well as passport, Medicare and driver's licence numbers.

"Companies throughout Australia should stop regarding all of this personal data as an asset for them, they should actually think of it as a liability," Mr Dreyfus told ABC's Insiders program on Sunday.

Mr Dreyfus said he had not heard a sufficient reason as to why companies were retaining the amount of personal data they currently were and that Optus had failed to keep user information safe.

"This is a wake-up call for corporate Australia," he said.

"I may be bringing reforms to the Privacy Act before the end of the year to try and toughen penalties and make companies think hard about why they are storing the personal data of Australians."

The federal government has blasted Optus's handling of the breach, saying it was a basic hack that had exposed millions of Australians to potential identity theft.

Optus boss Kelly Bayer Rosmarin has apologised to customers but is resisting calls to go.

Opposition cyber security spokesman James Paterson said the coalition would be open to bigger fines for breaches of the Privacy Act.

"We do want to make sure that major companies in Australia are taking this very seriously," he told Sky News on Sunday.

Home Affairs Minister Clare O'Neil has been heavily critical of Optus and turned her sights to the former government, describing laws designed to protect Australia's critical infrastructure from cyber attack as "bloody useless".

She told Nine newspapers that Australia's laws meant the government could step in during a cyber attack but was relatively powerless once it was over.

Mr Paterson flagged support for any changes that may be necessary if there was evidence to support them.