The Australian federal government has announced a substantial AUD $288 million investment in establishing the country’s planned national digital ID system. The initiative is designed to enhance the way Australians use and share important credentials such as Medicare cards, passports, and driver’s licenses through a digital platform accessible via mobile phones.
The funding will facilitate upgrades to the encryption of existing platforms like myGov and myGov ID, coinciding with the anticipated passage of federal laws that will formally introduce the new national ID system.
The purpose of the digital ID system, as outlined by Minister Katy Gallagher, is to reduce the need for individuals to overshare personal information when accessing services online. This method of secure online identification is likened to the simplicity and security of using a mobile phone to make payments. Currently, the myGov ID platform, which serves as a single sign-on point for several government services, does not support the digital sharing of Medicare cards and similar credentials. This limitation prevents these digital IDs from being fully used across various government and private sectors, including health care providers and insurance companies.
In response to these challenges, the government is planning a series of pilot programs to encourage the adoption and trust in the new digital ID system. The pilots will be supported by additional funding allocations to ensure robust security and privacy. The Australian Security Intelligence Organisation is set to receive AUD $3.5 million to assess the security of firms participating in the scheme, and the Office of the Information Commissioner has been allocated AUD $5.6 million for overseeing privacy. The digital infrastructure will also be strengthened by the Australian Taxation Office (ATO) with a AUD $156 million investment to enhance the myGovID platform, which will soon be rebranded as myID to avoid confusion with the myGov service portal.
To further bolster security, AUD $11 million will be allocated over four years to improve the Credential Protection Register, which helps individuals lock down their information following identity theft.
Industry experts predict that mobile phone smart wallets, which will house these digital IDs, will become the primary means for a wide range of transactions and interactions with government agencies. It’s a shift that is expected to drastically increase efficiency, with McKinsey estimating that digitizing identity and credentials could lead to productivity savings amounting to three percent of GDP by 2030.
The scheduled rollout of the digital ID system is set for July 1, initially encompassing federal and state government services with plans to include businesses within two years.
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May 13, 2024 – by Cass Kennedy
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