Monday, March 31, 2025

Australia’s Digital Identity Plan Falls Short of Global Privacy Standards – Here’s What the Federal Government Must Do to Fix It

All essential documentation, including driver’s licenses and Medicare cards, will be consolidated into a single digital wallet, streamlining access to various services.

Federal authorities are developing the system, with a pilot program expected to last approximately 12 months. Dubbed the “Belief Trade”, this component of the system is engineered to robustly verify individuals’ identities through digital token authentication.

In a speech to the National Press Club in Canberra last year, Federal Minister for Government Services Bill Shorten described the newly introduced digital ID system as “world-leading”. Notwithstanding its shortcomings, several aspects stand out as notable, especially when benchmarked against global standards such as those prevailing in the European Union.

How can it not be mounted?

What’s Belief Trade?

BeliefTrade, a platform known as TEx, aims to streamline the way individuals present themselves online. The system can seamlessly integrate with myID, allowing Australians to securely store and manage their digital identification documents in one convenient location.

The platform aims to be both secure and user-friendly. With this streamlined process, customers gain the flexibility to initiate transactions across a wide range of services, from banking to seeking presidential assistance, without being encumbered by unnecessary administrative tasks.

The system enables secure sharing of sensitive information, such as age, visa status, or license numbers, without physical documentation or compromising privacy, simply by showcasing one’s digital identity.

Instead of physically presenting a driver’s license to gain entry into a licensed venue, consider using a digital authentication method that verifies the individual’s age as being at least 18 years old.

What’s going to happen to this sensitive data once it leaves your premises?

Falling wanting world requirements

Units worldwide require a comprehensive digital ID administration. Here is the rewritten text:

These conditions ensure individuals exclusively share the essential information needed while retaining control over their digital personas without relying on centralized authorities.

The regulation is founded upon these fundamental requirements. The proposed framework establishes a robust, privacy-focused digital ID system across all member states. Decentralized by design, this system empowers customers with complete control over their credentials and authentication process.

Despite being proposed as a type, Australia’s digital ID system fails to meet global standards in several crucial ways.

First, it’s a centralised system. Everything will likely be comprehensively monitored, strategically managed, and securely stored by a unified governing entity. This will render our systems vulnerable to breaches and undermine customers’ control over their digital identities?

Secondly, the system fails to conform to the World Wide Web Consortium’s verifiable credentials standards. Customers should have the ability to manage their private attribute disclosures in a way that mirrors traditional identification methods, such as proof of age, where only essential information is shared to access a service.

As a result, there is a heightened risk that confidential information may be inadvertently shared publicly.

Third, world requirements emphasise . Customers’ interactions with various providers remain discrete, with no aggregation of their data across multiple platforms.

While Australia’s digital ID system is built on a token-based framework, it poses the risk that disparate service providers could track customers across services, potentially profiling their behavior. While comparable systems within the EU possess explicit safeguards preventing such monitoring without the consumer’s express authorisation.

While Australia’s framework has some similarities to the EU’s approach, it notably lacks stringent guidelines regarding the collection and processing of biometric data, including facial recognition and fingerprint information, requiring explicit consent from individuals.

Filling the gaps

To ensure a successful digital ID system, it is crucial that federal authorities address key issues effectively. gives a path ahead.

The digital ID system should streamline the verification process by automatically generating a comprehensive and diverse set of credentials for each verification instance.

The revised text is:

This change will significantly reduce the risk of consumer profiling by preventing a single credential from being unduly linked to a particular service. This helps mitigate the risk of someone being targeted unfairly due to possessing a less widely recognized credential, such as an overseas driver’s license.

It is crucial that…

To further enhance digital sovereignty, the system should be designed as a decentralized entity, akin to the European Union’s framework, thereby empowering users with control over their digital identities. This measure significantly minimizes the risk of centralized data breaches. This diversification of authority also guarantees that clients are not dependent on a solitary regulatory entity to manage their certifications.

Australia’s rollout of its digital identity system marks a significant milestone in enhancing security and convenience for everyday transactions. Despite these concerns, the federal government must address the shortcomings in its current framework to ensure that this approach effectively balances Australians’ privacy and security.Australia’s Digital Identity Plan Falls Short of Global Privacy Standards – Here’s What the Federal Government Must Do to Fix It

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