The Federal Budget 2006/07 announcement follows calls from business and industry for greater assistance to meet compliance.

Attorney General Philip Ruddock said consultation with the private sector will be a key element of ensuring information and guidance materials meet the needs of Australian industry.

The materials will provide guidance on how to improve and consolidate privacy practices within organizations.

As well as devising strategies the OPC will develop business specific tools to help business undertake their own internal compliance activities.

"The increased resources to assist businesses to meet their obligations will ease the regulatory burden and should increase consumer confidence in the handling of personal information by private sector organizations," Ruddock said.