Australia has taken a significant step toward securing the Internet of Things. On 2 September, Minister for Cyber Security Tony Burke launched the Voluntary Cyber Security Labelling Scheme for Smart Devices at the Connecting Technology Summit in Sydney — a pilot backed by $1.7 million in Commonwealth funding.

How the Scheme Works

Think of it like energy star ratings, but for cyber security. Vendors submit their smart devices — cameras, doorbells, smart TVs, routers, sensors — for independent assessment against a set of baseline security standards. Products that pass receive a visible security label, giving buyers a clear signal that the device meets minimum protections such as unique default passwords, encrypted communications and regular security updates.

Major manufacturers including NetComm, Telstra, ASSA ABLOY and Electrolux are already participating in the pilot, with a full national rollout planned for March 2027.

Why This Matters for Small and Mid-Sized Businesses

As a managed IT provider, we regularly see businesses deploying smart devices — IP cameras, digital signage, IoT sensors — without asking a single question about their security credentials. Each unsecured device is a potential entry point into your network.

The labelling scheme gives you a practical purchasing tool. When evaluating new hardware, look for the security label the same way you compare energy ratings on appliances. It won’t replace a proper network security review, but it raises the floor considerably.

What You Should Do Now

While the scheme is still voluntary, we recommend three steps:

1. Audit your existing IoT devices — know what is connected to your network and whether it receives firmware updates.
2. Favour labelled products — as the scheme rolls out, prioritise vendors participating in the pilot.
3. Review your network segmentation — isolate smart devices on a separate VLAN so a compromised camera cannot reach your file server.

Need help assessing your current IoT exposure? Talk to our cybersecurity team about a network security review tailored to your business.