SOC 2 Compliance for Australian Businesses: A Practical Getting-Started Guide

February 17, 2026

SOC 2 compliance is a framework that proves to your customers, partners, and investors that you handle their data securely and operate reliable systems. For Australian businesses, especially those offering SaaS platforms, cloud services, or managing customer data, SOC 2 has become a standard customer expectation and often a hard requirement for landing enterprise contracts.

This guide walks through what SOC 2 actually requires, how much it costs, how long it takes, and how to start the process without getting lost in complexity.

What SOC 2 Actually Measures

SOC 2 is built around five Trust Service Criteria that define how your organisation handles data and delivers services. Security is mandatory in every audit. The other four are optional and depend on what your business does and what your customers care about.

Security: Controls that protect systems and data from unauthorised access, breaches, and misuse. This includes access controls, multi-factor authentication, network protections, vulnerability management, security monitoring, and incident response.
Availability: Ensures your systems are reliable and available as promised, covering uptime monitoring, backup and recovery, disaster recovery plans, and redundancy.
Processing Integrity: Confirms that data processing is complete, accurate, and timely without errors.
Confidentiality: Protects confidential business or personal data throughout its lifecycle.
Privacy: Addresses the collection, use, retention, and disposal of personal information in line with privacy principles.

Most organisations start with Security only or add Availability if they operate platforms where uptime matters to customers. You choose the criteria that align with the promises you make to your clients.

Type 1 vs Type 2: Which One Do You Need?

There are two types of SOC 2 reports, and understanding the difference saves confusion early.

SOC 2 Type 1 is a point-in-time assessment. The auditor reviews your controls on a specific date to determine if they are designed properly to meet the Trust Service Criteria. It evaluates whether your policies, systems, and procedures look adequate on paper but does not test how well they work over time.

SOC 2 Type 2 is the full version. The auditor tests both the design and the operational effectiveness of your controls over a period, typically three to twelve months. This report provides stronger assurance because it proves your controls are not just documented but actually functioning day-to-day.

Type 1 can be a useful starting point if you are new to compliance or need to demonstrate initial readiness quickly. However, most customers and enterprise partners expect a Type 2 report because it carries more weight. If you are pursuing SOC 2 to win contracts or satisfy due diligence requests, plan for Type 2 from the start.

The Process: What You Need to Do

Getting SOC 2 certified follows a structured process that typically takes six to twelve months for Type 2. Here is how it works.

Scoping and readiness assessment is the first step. You define which systems, processes, and business functions will be included in the audit. A readiness assessment follows to identify gaps between your current state and what SOC 2 requires. This phase usually takes four to eight weeks and involves reviewing your existing policies, technical controls, and documentation.

If your organisation needs help defining scope, identifying gaps, or understanding what the auditor will look for, a gap analysis is a good starting point. Siege Cyber offers these as a standalone service and can guide you through the readiness phase without committing to the full audit immediately. Visit siegecyber.com.au/services/soc2 to see how we help businesses across Brisbane, Sydney, and nationwide prepare for their SOC 2 audits.

Documentation and control implementation comes next. This is where you build or refine your policies, procedures, and technical safeguards to meet the chosen Trust Service Criteria. In practice, a SOC 2 Type 2 examination can involve 60 to 150 control points. Examples include identity and access management, multi-factor authentication, encryption at rest and in transit, change management workflows, logging, monitoring, and incident response. This phase typically takes four to twelve weeks depending on your starting point.

The observation period is unique to Type 2. Your controls must operate effectively for a minimum period, usually three to six months, before the auditor will attest to their operational effectiveness. During this time, you collect evidence to demonstrate that your controls are working as intended. This is where compliance automation platforms like Vanta or Drata become helpful, as they continuously gather evidence and monitor control performance. Siege Cyber is an official partner of both platforms, meaning we can help you use these tools effectively while providing the expert guidance that no platform can replace.

The audit itself is the final step. An independent auditor conducts the examination, tests your controls, reviews evidence, and issues the SOC 2 report. For Type 1, this is a faster process since it is point-in-time. For Type 2, the auditor reviews evidence collected across the full observation period.

What SOC 2 Costs in Australia

SOC 2 compliance costs vary depending on your organisation’s size, complexity, and readiness. For Australian businesses, expect total costs between $30,000 and $150,000. This includes audit fees, consulting or advisory support, compliance tools, and staff training or remediation work.

Audit fees typically range from $25,000 to $50,000. Consulting or virtual CISO support adds $50,000 to $150,000 per year depending on scope. Compliance tools like Vanta, Drata, or similar platforms cost $10,000 to $80,000 annually. Training and remediation work to close gaps identified during the readiness phase can add $5,000 to $30,000.

Smaller organisations with simpler systems and fewer gaps to close will sit closer to the lower end of that range. Larger businesses with complex IT environments, multiple systems in scope, or significant remediation work will spend more.

Siege Cyber offers fixed-price compliance packages that spread costs over twelve months with no hourly billing or surprises. You can see detailed pricing at siegecyber.com.au/#compliance-pricing. Our packages include a dedicated consultant, smart automation, all the documentation you need, and a guarantee that you will pass your audit.

How SOC 2 Fits with Other Australian Requirements

If you are already familiar with ISO 27001, SOC 2 will feel similar in structure but different in execution. ISO 27001 is an internationally recognised certification that focuses on building an Information Security Management System (ISMS). SOC 2 is a US-based attestation framework focused specifically on how service providers handle customer data.

ISO 27001 is more prescriptive, requiring you to address 93 security controls and justify why each is included or excluded. SOC 2 is more flexible, allowing you to tailor controls to your specific business and the Trust Service Criteria you choose. Both frameworks cover similar ground: risk management, access control, incident response, monitoring, and documentation.

For Australian organisations in regulated industries, SOC 2 can complement local requirements like APRA CPS 234, which applies to financial services entities. CPS 234 mandates information security standards, incident reporting within 72 hours, and regular testing of controls. SOC 2 shares similar objectives around data security, risk management, and incident response. Achieving SOC 2 can help demonstrate alignment with CPS 234 requirements, though they serve different purposes and audiences.

Why Australian Businesses Pursue SOC 2

SOC 2 is rarely pursued for compliance’s sake. Most Australian organisations go after SOC 2 because their customers demand it. Enterprise buyers, especially those in the US or Europe, often require SOC 2 Type 2 reports during procurement processes. Without one, you will not make it through the due diligence stage, no matter how good your product is.

SOC 2 also provides internal value. The process forces you to formalise your security practices, document your controls, and operate with discipline. Even if no customer ever asks for the report, the work of achieving SOC 2 makes your organisation more secure and resilient.

Getting Started: What to Do Next

If you are considering SOC 2, start by defining your scope and understanding where you currently stand. A readiness assessment or gap analysis will show you what needs to be built, documented, or improved before you engage an auditor. This avoids wasting time and money on an audit you are not ready to pass.

Once you know your gaps, prioritise remediation work and start collecting evidence. If you are aiming for Type 2, remember that the observation period cannot be shortened, so the sooner you begin operating your controls effectively, the sooner you can complete the audit.

Siege Cyber works with businesses across Brisbane, Sydney, and throughout Australia to deliver audit-ready penetration tests that satisfy ISO 27001 requirements. We’ve helped numerous organisations achieve certification, and every single one has passed their audit on the first attempt.

Siege Cyber has been helping businesses across Australia with penetration testing, compliance, and cyber risk for over 20 years. If you’d like to discuss what type of testing makes sense for your organisation, or if you’re preparing for an ISO 27001 or SOC 2 audit and need testing as part of that process, get in touch.

You can reach us at siegecyber.com.au or email [email protected] directly. We’re based in Brisbane but work with clients across the country.