The Australian government has passed the Digital ID Bill 2024, paving the way for a national digital ID system.
Digital ID Bill 2024 will establish a framework for an economy-wide digital identity platform, allowing financial institutions and other service providers to join and offer secure online transactions.
The Digital ID system aims to enhance privacy and security for online users by reducing the need to share physical identity documents, and will also encourage digital ID service providers to join a voluntary accreditation scheme, ensuring compliance with Australian regulatory standards and maintaining high levels of security and authentication.
The legislation is expected to receive Royal Assent soon and will come into effect in November of this year. It is expected that by 2026, businesses will be able to participate in the government’s Digital ID system, creating a more robust and secure digital ecosystem for Australian consumers and businesses.
”It’s great to see a commitment to realising the benefits that a strong Digital Identity ecosystem will offer Australian consumers and businesses,” commented Rick Iverson, head of product at Australian Payments Plus, an organization that brings together Australia’s three domestic payment providers. “As we’ve always said, the fewer times people share their identity documents, the fewer opportunities there are for data theft.”
Earlier this week, the Australian government announced that it would allocate $288 million to support the implementation and expansion of the digital identity system, funding that will facilitate upgrades to the encryption of existing platforms like myGov and myGov ID.
Source: Finextra
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May 17, 2024 – by Ali Nassar-Smith
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