The Australian Government’s Digital ID system: Enhancing security and privacy

In an increasingly digital world, secure and reliable identification is crucial for accessing government services, conducting business transactions and protecting personal information.

The Government has committed $288.1 million over four years, starting from 2024–25, to expand and improve the existing Digital ID system. This investment aims to enhance security, streamline processes and empower Australians to fully realise the economic and privacy benefits of Digital ID.

The key funding components include:

ATO enhancement

The ATO will receive $155.6 million over two years to continue operating and improving the Government’s Digital ID platform – myGovID – to help ensure secure interactions with Government agencies.

Services Australia identity exchange

Services Australia will receive $46 million over two years to enhance the identity exchange component of the Australian Government Digital ID System.

Department of Finance leadership and governance

The Department of Finance will receive $35.2 million over two years to continue providing policy leadership and governance for the Digital ID program.

Piloting digital wallets and verifiable credentials

A total of $23.4 million over two years will be allocated to the ATO, Department of Finance and Services Australia for piloting government digital wallets and verifiable credentials.

Credential Protection Register enhancement

The Attorney-General’s Department will receive $11 million over four years to enhance the existing Credential Protection Register in an effort to help individuals manage their digital credentials securely and protect against identity-related crime.

Data standards functions

The Treasury will receive $7.8 million over two years to deliver the data standards functions required under the Digital ID legislation to ensure interoperability and consistency across the system

Privacy oversight

The Office of the Australian Information Commissioner will receive $5.6 million in 2024–25 to provide privacy oversight under the Digital ID legislation.

Security assessments

ASIO will receive $3.5 million over two years to conduct security assessments of entities seeking accreditation or participation in the Australian Government Digital ID System.

BDO comment

We welcome the Government improving the Digital ID system and continuing to provide a more secure, efficient and user-friendly digital experience for Australians. However, a significant pain point is the poor application of the current system to non-residents. BDO is disappointed that the Government has not explicitly committed to improving the experience for foreign residents who require a Digital ID to comply with their reporting obligations in Australia.

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