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Microsoft OneDrive: Cloud Storage and Governance for Australian Organisations

Microsoft OneDrive for Business provides users with cloud storage, file sharing, and collaboration capabilities, integrated with Microsoft 365, with specific governance considerations for Australian organisations.

Last reviewed 23 May 2026

What OneDrive Does

OneDrive for Business allows users to store files online, synchronise them across devices, and share them with colleagues and external parties. Features like Files On-Demand reduce local storage requirements by streaming files directly from the cloud. Known Folder Move allows users to redirect their Desktop, Documents, and Pictures folders to OneDrive, centralising file management. The Personal Vault provides an additional layer of security, requiring multi-factor authentication for access.

OneDrive in Australian Tenants Today

Australian organisations utilising OneDrive must address specific governance requirements. The OAIC’s reasonable steps framework mandates clear audit trails, making OneDrive’s activity logs crucial for demonstrating compliance. When an employee departs, eDiscovery scope must extend to their OneDrive, potentially impacting data retention obligations. Leverage Microsoft Purview for consistent retention policies across Microsoft 365, and carefully configure external sharing controls to align with APRA CPS 234’s data security expectations and minimise exposure under the Notifiable Data Breach scheme.

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