In Australia cookies are not specifically dealt with under the privacy law. However, the consequences of using them and the collection of 'personal information' are regulated by the Privacy Act 1988 (Cth) (Privacy Act) and the National Privacy Principles (NPPs).
In practice most Australian companies are transparent in their use of cookies, declaring when they are used and providing information about how to turn them off and the consequences of doing so. This transparency is combined with an appropriate privacy policy and compliance with the Privacy Act/NNPs.
However, in Europe there are EU regulations and national laws that specifically regulate the use of cookies. There have been significant recent developments in the regulation of cookies in the EU and I encourage you to read the client alert of my EU colleagues here for an update on this.
While there is currently no specific proposal on cookies in the Bill currently before Parliament to amend the Privacy Act/NPPs, there has from time-to-time been serious discussion about whether cookies should be specifically regulated under Australian privacy law and, given the continuing EU moves in this space, it may be raised again. Of course, we will keep you up-to-date with any movements in this regard.
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