The Pros and Cons of Australia’s National Digital ID Scheme: Expert Analysis

A National Digital ID Scheme Proposed in Australia: An In-Depth Analysis

Introduction

The Australian government is considering the implementation of a national digital identity scheme in an effort to combat identity crime, which is estimated to have cost the country A$3.1 billion in 2018-19. The proposed scheme would allow individuals to prove their identity without having to share physical documents such as passports, driver’s licenses, or Medicare cards. While the initiative aims to enhance security and streamline identification processes, it is not without its critics. In this report, we will analyze the pros and cons of the proposed national digital ID scheme in Australia.

The Proposed Changes

Under the proposed draft bill, the national digital ID scheme would initially be regulated by the Australian Competition and Consumer Commission (ACCC) and the Australian Information Commissioner, with the goal of establishing a new governing body in the long run. The bill puts forth substantial updates to security requirements for organizations storing individuals’ IDs, as well as mandates reporting of data breaches and suspected identity fraud.

The rollout of the scheme would occur in four phases. Phase one entails the establishment of legislation and the accreditation of both private and public providers. Phase two involves incorporating state- and territory-issued IDs into the scheme for use with federal government services. Phase three seeks to extend recognition of the digital ID into the private sector. This means individuals would be able to use their digital ID to apply for services such as bank loans without the need to provide physical identity documents. Finally, phase four would allow accredited private sector digital IDs to verify individuals when accessing specific government services.

Advantages of the Proposed Scheme

One of the key advantages of the proposed national digital ID scheme is the increased power granted to the Australian Information Commissioner, along with restrictions on how organizations can request, store, and disclose personal identifying information. The draft bill outlines minimum cybersecurity standards and mandates regular reviews of organizations handling identity data. These provisions aim to address the lack of regulation and enforcement of identity protection legislation that Australia has experienced, as highlighted by recent data breaches at companies like Medibank, Optus, and Latitude.

Unresolved Security Concerns

While the national digital ID scheme appears promising, there are significant concerns regarding the security of the existing MyGovID app, which is already being used by millions of Australians and businesses. Security researchers have previously identified flaws in the design of MyGovID, urging the public not to use the app. It remains unclear whether these issues have been adequately addressed, as the government declined to take corrective action when initially notified. Additionally, the Australian government and its authorities have a poor track record when it comes to securing citizen information, with multiple data breaches reported by government agencies. The proposed draft bill does not address these historical security vulnerabilities adequately.

Honeypot for Hackers and Concerns over Surveillance

Even if the government strengthens the security of the proposed scheme, it remains vulnerable to individual phone security. Weak passwords, phone loss, or hacking could compromise the data stored in the digital ID app. Moreover, by centralizing personal identification data across federal and state jurisdictions, as well as private entities, the proposed scheme would grant the federal government significant oversight over citizen lives. Concerns arise over the potential for government surveillance and tracking, particularly due to recent changes in legislation. Small modifications to laws surrounding surveillance could allow for constant location tracking and the recording of interactions with both public and private organizations.

Public Consultation and Recommendations

While the draft bill for the national digital ID scheme is open for public consultation until October 10, there are concerns regarding the limited timeframe for feedback. The tight consultation period raises doubts about the effectiveness of incorporating diverse perspectives into a well-rounded solution. It is vital to strike a balance between protecting digital identities and ensuring that the proposed scheme does not lead to broader harm.

In light of these concerns, it is essential to address the existing security flaws in the MyGovID app before implementing a broader national digital ID scheme. Moreover, the government should prioritize closing the data breach reporting loophole that currently exempts state and government authorities. A transparent and robust data protection framework needs to be established to maintain public confidence in the security and privacy of personal data under the proposed scheme.

This report was prepared by for The New York Times. is a current affairs commentator specializing in digital privacy and internet security.