Australia to Spend $145 Million on ‘Voluntary’ Digital ID

Person using a mobile phone. (jannoon028/Freepik)

The Australian federal government has announced $145.5 million (US$97 million) of taxpayer funds to support the digital ID system.

The government claimed digital ID is a “secure, convenient, voluntary, and inclusive” way for Australians to verify their ID online.

“Digital ID is not a card, it’s not a unique number, and it’s not a new form of ID,” the government said in a press release.

Finance Minister Katy Gallagher introduced legislation for a national digital ID for Australians on Nov. 30, before it was referred to a committee for inquiry.

Australia’s digital ID is an online verification system that is advertised online as a “solution” that “makes our lives a whole lot easier” and “our personal info a whole lot safer.”

The bill provides a legislative framework for Australians to verify their identity in online transactions with “government and business,” an explanatory memorandum states (pdf).

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“Digital ID is a major economy-wide reform with significant economic, security, and privacy benefits for individuals and businesses,” the government states.

“The bill will provide for the Minister to make rules to regulate the accreditation of other kinds of services in the future to account for changes in technology and the way in which digital ID systems operate.

“For example, potential future roles could be providers of digitally verifiable credentials or Digital ID wallets.”

The Digital ID Bill 2023 was referred to the Economics Committee for consideration with a possible reporting date of Feb. 21, 2024.

What Is Going On?

A proposal to refer the legislation to the Economics Legislation Committee, presented to the Senate, noted the digital ID is a “major whole of economy reform.”

“There will be substantial interest from participants in the Digital ID system, businesses, both current ad potential users of digital ID, various civil society groups such as privacy advocates, as well as individual citizens,” the proposal notes.

“It is a relatively complex system and law, which involves states, territories, the Commonwealth business, and individual citizens.”

The proposal noted submissions and evidence could be received from “participants in the Digital ID system” including Mastercard, Australia Post, the Australian Tax Office, and Australian Payments Plus.

Australian Payments Plus recently unveiled a digital identity solution known as ConnectID for customers at banks including Commonwealth Bank (CBA) and National Australia Bank (NAB).

NAB recently backed a digital ID “in Australia, for all Australians,” noting its recent launch of ConnectID, in partnership with Australian Payments Plus.

The committee expects it may also receive evidence from sectors of the economy that require proof of identity and storage of data including banking, real estate, employment, telcos, insurance, and hospitality.

The government funding to “support the digital ID system” includes $67 million (US$45 million) for the Australian Competition and Consumer Commission (ACCC) from July 2024 and $56 million (US$37 million) for the Attorney General’s department.

What Was Said in the Senate Debate

Finance and Public Service Minister Katy Gallagher said the bill is about “reducing the amount of information that is being held to verify your ID.”

“That information is currently being held in a number of places. Every time you have to prove your ID, where you provide information to different organisations—this is about reducing that. This is in response to Optus. It’s in response to Medibank,” Ms. Gallagher said.

“The private sector wants it in place. They want it regulated. We have the system in place now, and we have private sector ID providers who are unregulated. There’s no regulator.

“The ACCC is going to be put in place. This is a system that’s operating now. If people choose to get a digital identity—whether it be a public identity through myGovID or through one of the private sector ones—they are operating in it now. This is about enshrining it in legislation and making sure we’ve got an accreditation system in place.”

However, One Nation Senator Malcolm Roberts said the digital identity bill may be the “most significant piece of legislation this 47th parliament will introduce.”

“The effect of this bill is to tie every Australian to a digital identity that unlocks services necessary for life,” he said.

“This bill does not make identifying oneself online easier. It will facilitate making a digital identity check mandatory. That onerous measure comes at the price of putting identifying information for every Australian in the one spot and emits a giant, flashing, neon sign above everyone, saying, ‘Hack me.’”

Mr. Roberts attempted to move an amendment (pdf) to extend the inquiry period for the legislation until May. 14, 2024.

“Time will be needed to review four key areas: the technical feasibility of a digital identity in light of previous data-matching failures; security over the data; the outcomes from identical legislation in other jurisdictions; and implications for misuse of digital identity,” Mr. Roberts said.

“If those in this chamber are unaware of the significance of this legislation then they are proving the need to extend the inquiry period.”

Liberal National Senator Matt Canavan also spoke in favour of extending the committee inquiry period for the legislation.

“What the government is trying to do here is to rush this through without proper scrutiny, without Australians being able to understand what the government is doing with their data, with their security and with their privacy,” Mr. Canavan said.

The One Nation amendment vote was supported by the Coalition, United Australia Party, and Jacqui Lambie but defeated with support of Labor and the Greens.