Australia’s Digital ID System — 2024 update
The proposed Australian Digital ID took a significant leap forward in 2024 with the Digital ID Act and the Digital ID (Transitional and Consequential Provisions) Act . Clearing the Senate in March and the House of Representatives in May, this legislation sets the stage for an economy-wide digital ID system and is poised to revolutionise how Australians engage with businesses and government services online.
At its core, the bill establishes a framework for a nationwide digital ID system, opening doors for financial firms and service providers to join the government's platform, which promises a more secure and streamlined online experience for Australians across various sectors.
In addition, the legislation also introduces a voluntary Accreditation Scheme, which encourages digital ID providers to meet the strict standards set by Australian regulators and ensure high levels of security and authentication. The aim is to build trust in the system. The legislation is expected to be implemented by December 2024, and after no more than 2 years (by 2026), businesses will have the opportunity to integrate with the government's Digital ID System, potentially reshaping how Australians interact online with both private and public services.
What is the Australian Government Digital ID System?
The just-passed Digital ID Bill defines a digital ID of an individual as a ‘distinct electronic representation of the individual that enables the individual to be sufficiently distinguished when interacting online with services.’
The ID system will be an online identity verification process that would allow Australians to quickly identify themselves without needing to provide “points” of identity each time. Typically, when Australians need to verify their identity, such as when applying for a loan, a credit card, or even a passport, they have to provide multiple types of ID, including birth certificates, payslips, Medicare card, bank statements and so on.
This analogue identification system is flawed, as it often includes verification being accepted via a simple visual check by an untrained agent, and lacks secure storage when the documents are transmitted online. With the Digital ID , however, Australians can safely and securely verify their identity online to access services by government agencies and other private organisations.
The ID system will be delivered by Services , the Australian Taxation and the Department of , and will be used by many government services to verify users. According to the Department of Finance, the new system will allow users to choose their preferred digital ID provider for accessing government and private services. Private organisations can apply to be accredited as digital ID service providers from the Trusted Digital Identity (TDIF), the federal government’s accreditation framework.
This new digital ID system will be a ‘federated’ system, which provides users with a choice of who you create your Digital ID with — a Commonwealth, state or territory digital ID provider, or an industry digital ID provider. The Federal Government is also planning to integrate the Digital ID System with other state-based digital IDs, such as those created by the governments of New South Wales, Victoria, Queensland and others. This will ensure the Australian Digital ID doesn’t lead to duplication with state-level digital ID systems.
How to set up a digital identity
To get started creating a digital ID in Australia, citizens and residents simply need to select an accredited organisation to create the digital identity. Currently, a digital ID can be created to access government services using the Australian Government’s app. Soon, users will be able to create their digital identity using other identity providers.
To create a , users need to follow 3 simple steps:
- Download the myGovID app on the App or the Google play .
- Follow the prompts on the app. The user only needs to add their full name, date of birth and a personal email address.
- Choose their identity strength.
myGov vs myGovID
Despite sounding similar, there is a difference between and . myGov is a simple and secure way to access different government services all in one place, while myGovID is a digital identity app that allows users to prove who they are when accessing government services. However, users can choose to connect their myGovID to their myGov accounts.
Digital ID strengths
Different services will have different ID requirements, which depend on the level of risk posed when a user is indirectly verified, or service is provided to the wrong person. For example, when setting up an email, only a name and phone number is needed, but applying for a tax file number online will need more ID information.
Thus, when creating their digital IDs, users can choose between 3 different digital ID strengths: basic, standard or strong. The government online services a user wants to access will determine the minimum identity strength they need.
Below are the requirements for each of the ID strengths.
Basic identity strength
A basic myGovID provides users with limited access to government online services. For this identity strength, users will simply need to enter their personal details like name, date of birth and an email address.
This identity strength requires one identity document.
Standard identity strength
A standard myGovID will provide users with access to most government online services. To get this identity strength, users must enter their personal details and verify at least two of the following identity documents:
- Driver’s licence or learner’s permit
- Passport
- Birth certificate
- Visa (including the foreign passport)
- Citizenship card
- ImmiCard
- Medicare card
Strong identity strength
A strong myGovID provides access to all online government services. For this identity strength, the user will need to enter their personal details, and then verify their passport plus one of a citizenship certificate, driver’s licence (including learner’s permit) or Medicare card. The user would also need to undergo a one-off face verification check that ensures the user is a real person, and is verifying in real time. This facial verification is like a selfie that is compared to the photograph on their official documents.
Security considerations
While the advantages of a digital ID system are evident, its implementation will raise crucial privacy and surveillance concerns. Leaders and policymakers are faced with the challenge of balancing these concerns against the system's potential for improved security and efficiency.
The centralised nature of the Digital ID system means a substantial amount of personal data will be collected, stored and potentially monitored by the government. This includes not only basic identification details but also information about individuals' online interactions and transactions. For both government agencies and business leaders in the private sector, the responsibility lies in advocating for responsible data use and ensuring robust safeguards are in place to prevent misuse.
Salsa Digital’s take
The analogue system of identity verification in Australia was fraught with challenges. Identity theft, fraud and a lack of personal data control have plagued the system, costing the Australian Government over USD 2 in the past year alone. Recent high-profile data breaches at , and have highlighted the vulnerabilities in the current approach to sharing sensitive information.
A well-implemented digital ID system offers a promising solution to these issues. By centralising personal documents and information with secure providers, we can significantly reduce the risk of identity theft. This approach would eliminate the need to send digital scans of ID documents via email for everyday tasks like setting up bank accounts or applying for loans.
However, the success of this system hinges on proper implementation. Moving forward, it's crucial that all stakeholders prioritise robust security measures, transparent data practices and user privacy. If executed thoughtfully, Australia's Digital ID could transform our online interactions, offering a more secure, efficient and user-friendly digital experience for all Australians.