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Australia’s Digital ID Act 2024 Signed Into Law

 |  July 5, 2024

By: Julian Lincoln, Patrick Clark, Kaman Tsoi, Neeharika Palachanda & Kathryn Quinn (Herbert Smith Freehills)

Australia’s Digital ID Scheme

On May 30, 2024, Australia enacted the Digital ID Act 2024 and the Digital ID (Transitional and Consequential Provisions) Act 2024, after nearly three years since the initial draft was released and following a $288.1 million boost from the federal budget. These laws, known collectively as the Digital ID Acts, have fast-tracked the inclusion of private sector entities in the Digital ID scheme. Similar to the UK’s approach, Australia will implement a phased roll-out of the new national Digital ID system, expanding the existing Australian Government Digital ID System (AGDIS) to state and territory governments and introducing a voluntary accreditation scheme for Digital ID service providers. Initially focused on government services, the scheme will extend to private sector organizations within two years. Banks, credit card operators, and Australia Post will be the first private sector entities to integrate into the Digital ID scheme, allowing access to their services with a government Digital ID and eventually offering their own Digital ID accreditation services to individuals.

The Australian Competition and Consumer Commission (ACCC) has been appointed as the initial Digital ID regulator, leveraging its consumer-focused expertise and similar role in the Consumer Data Right (CDR) framework. A dedicated digital-specific regulator is anticipated as the system grows. The Digital ID Acts are set to commence by December 1, 2024, alongside supporting rules and data standards. New drafts of these standards have been published for public comment, with submissions open until June 25, 2024. The additional funding will support a series of pilot programs with private sector entities to test the AGDIS application within the private sector…