The Data Retention Act comes into effect tomorrow, but many say there are still big security issues and costs have not been addressed.

From Tuesday, the Act will forced telcos and ISPs to retain a range of customer data for 24 months.

An industry body for ISPs – Internet Australia – says the implementation of effective data retention is way behind schedule.

“Many ISPs affected by the legislation [are] still struggling to understand their obligations and therefore still compiling their implementation plans,” Internet Australia CEO Laurie Patton said.

He said areas like security and compliance costs need examining, and proposed that the length of data retention should be reduced from two years to six months.

“This would be more in line with other countries and would lessen the burden on ISPs by reducing the costs of storing vast amounts of data. It would also lesson the risks of security breaches leading to unlawful disclosure of people’s personal and private information,” Mr Patton said.

“We are not convinced that there are processes there to restrict who can access the data, along with checks and balances to ensure that information is not misused.”

The cost of complying is a big issue too.

“The government’s budgeted amount of $128 million is clearly well below the likely total costs for the industry. This means that consumers will eventually pay more in Internet access fees. It is extraordinary that an Act of this complexity is due to come into effect before anyone knows how much they will receive to cover their costs of compliance,” Mr Patton said.

“There is a risk that some, perhaps many, of the smaller ISPs will simply go out of business as a result of this new law. This is especially unfortunate for regional and remote Internet consumers who rely on local ISPs because they offer a specialised and personalised service.”

For anyone wishing to maintain their right to digital privacy, the Pirate Party has put out a handy list of sites and applications to help thwart the all-seeing-eyes of the government.