Federal Minister for Public Service, Katy Gallagher, revealed that an Australian Digital ID system might start operating by the middle of next year.
The project got the green light from the Cabinet and is now moving into the consultation phase, with a draft exposure bill planned to be available by September. Minister Gallagher’s goal is to introduce the legislation in the Federal Parliament this year, with the aim of implementing the system by mid-2023.
The government’s efforts to create a national digital ID scheme gained momentum as state and federal governments reached an agreement to expand the use of biometric data for the proposed federal system. This agreement outlined ten principles to govern how ID services should work across the country, making it easier for people to use and reducing fraud.
Despite the progress, there are still challenges ahead for successfully putting the digital ID system in place. Minister Gallagher acknowledged that although the infrastructure is in place, there is a need for proper regulations and structure to drive the project forward and fully benefit from a national system. Nevertheless, the government is fully committed to realizing the potential of the national digital ID scheme, aiming to improve connectivity between systems and unlock benefits for the whole economy.
Dr. Philip Bos, CEO, and Founder of BlueKee, emphasizes that traditional methods of proving identity, like physical IDs and personal information, are outdated and vulnerable to identity theft and fraud. The recent high-profile data breaches have highlighted the risks associated with the current system, where enterprises store vast amounts of personal data in centralized systems, making them attractive targets for attackers. This flawed identity ecosystem erodes trust in organizations.
To address these challenges, Dr. Bos advocates for a decentralized data system for a national digital ID to be effective. In a decentralized system, no data is stored, minimizing the risk of data theft. This approach would give individuals more control over their own identity, as they would only share necessary information, reducing the likelihood of personal data being misused or sold without consent.
The implications for Australian businesses
Mike Welsh, Customer Success Executive at Ping Identity says: “For businesses, these changes to the way personal data and digital identities are used and managed have some significant implications. The days of collecting and storing as much data as possible about customers are coming to an end.
“Businesses will only be able to collect the data that they expressly need to complete a transaction or deliver a service. This data will then only be stored for as long as it is required before being deleted. This shift also has implications for everything from marketing campaigns to loyalty schemes. Permission will need to be obtained from customers before their data is used to personalise campaigns or create individualised offers.
“In the months ahead, it will be important for businesses of all sizes to embrace the changes that are occurring the in digital space. Those that are prompt at introducing the required measures to properly deal with digital data and IDs will be best placed to serve customers in an efficient and secure manner in the future.”
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