Major Bank Says 46 Percent of Australians Ready for National Digital ID

In this photo illustration a man holds a phone displaying a valid Australian digital COVID-19 vaccine certificate in Sydney, Australia, on Oct. 14, 2021. (Cameron Spencer/Getty Images)

The Big Four’s National Australia Bank (NAB) has released research claiming 46 percent of Australians were ready to sign up for a bank-verified national digital ID.

The research comes as the Australian Senate prepares to debate the Digital ID Bill 2023 (pdf) on March 27.

The NAB said its research showed 14 percent of Australians were “very likely” to sign up to a digital ID, with a further 32 percent saying they were “likely” to do so.

However, 38 percent of Australians are undecided, 8 percent are very unlikely, and 7 percent are unlikely to sign up.

“While this research is encouraging, there is work to do to demystify some of the key concepts underpinning Digital ID systems and the developments happening in this space in Australia and internationally,” the NAB said.

The proposed law provides the government with a centralised platform for Australians to verify their identity online.

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This would apply to both government and businesses, according to an explanatory memorandum on the legislation.

“The Digital ID Bill 2023 (the Bill) aims to provide individuals with secure, convenient, voluntary and inclusive ways to verify their identity for use in online transactions with government and businesses,” the memorandum states.

“Promoting trust in digital ID services, including by ensuring less data is shared and stored, and in a more secure way, will facilitate economic benefits for, and reduce burdens on, the Australian economy.”

Senator to Present 100,000 Signatures Against ID

Liberal Senator Alex Antic has presented a petition to Australian Prime Minister Anthony Albanese with 123,000 signatures against the proposal.

Mr. Antic said he would not be supporting the legislation and raised concerns about individual privacies being exploited.

“This is a bill at the moment that’s pitched as though it is simply for your security, it will set up a nice friendly ID system so that you can interact with government, can interact with business,” Mr. Antic said.

“But I don’t buy it. This is the first step, well the next step, in another long step towards a digital future which you don’t want.

“This could very comfortably be tied in with a central bank digital currency, or with the social credit score, but you need digital ID before you even get to that.”

Australians can already voluntarily use a digital ID to sign up for government services including MyGov, Centrelink, Medicare, and the Australian Tax Office.

However, the digital ID legislation broadens this system for use by state and territory governments and the private sector.

NAB Touts Its Benefits

NAB claims the system has “privacy benefits” and will reduce non-essential data sharing and collection.

“Did you know that Digital ID could also assist to minimise the collection and sharing of your data?” the NAB said.

“By using digital ID, we can reduce the cyber and privacy risks to companies and individuals alike. With Digital ID in place, a company could validate that an individual is over 18 years’ old without having to collect and store identification documents.”

The bank said amid more online fraud and scams, there is a need to mitigate the risks of identity theft related to the over-sharing of personal data.

“Of course, implementing Digital ID in and of itself will not be a magic bullet. A culture shift is necessary,” the bank said.

“This shift is needed to change attitudes and behaviours associated with over-collection, over-sharing, and over-retention of personal information. To be successful, the change needs to be backed by clear and strong regulation and enforcement.”

Businesses ‘Fast Tracked’ for Digital ID Use

Meanwhile, the banks, credit card operators and Australia Post have been “fast-tracked” for inclusion within two years.

Finance and Public Service Minister Katy Gallagher is making changes to the legislation to secure support from Australian Greens, independents, and possibly the Coalition, the Financial Review reported.

To pass the legislation through the upper house, Ms. Gallagher has also agreed to amendments that will “confirm the voluntary use of the digital ID.”

Further, if an individual deactivates their digital ID, the technology will not be able to be reactivated without their consent.

On Nov. 30, the Senate referred the digital ID bill to the Senate Economics Legislation Committee for report.

This report, dated February 2024, explains that a digital ID regulator would be responsible for the accreditation of providers.

It says public bodies, companies, and foreign businesses registered under the Corporations Act 2001 (the Corporations Act) would be eligible to apply for accreditation, and to use the digital ID.

Coalition Senators Matt Canavan and Gerard Rennick raised concerns in the report (pdf), saying the government’s digital framework was “not really voluntary.”

The senators noted that under the bill, businesses can seek permission from the regulator to require customers to provide digital ID if it is “appropriate to do so.” However, the senators said this requirement was “vague” and didn’t put any limitation on the regulator’s powers.

In late 2023, the government said, “Digital ID is a major economy-wide reform with significant economic, security, and privacy benefits for individuals and businesses.”

“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.”