17 Oct 2025
by John Cullen

Digital identity in action: How Australia leads and how it compares globally

 *Please note that these thought leadership pieces represent the views of the contributing companies and do not necessarily reflect techUK’s own position. 


The Rise of Digital Identity 

Digital identity is no longer a futuristic concept – it is the backbone of secure, seamless interactions in an increasingly digital world. Across the globe, governments and businesses are investing in systems that allow individuals to prove who they are quickly, safely, and with minimal friction. Australia has emerged as a leader in this space, setting a high standard for innovation and trust through its national and state-level initiatives. 

Australian Federal Scheme 

Australia’s Digital ID system consists of two interlinked parts: 

  1. Australian Government Digital ID System (AGDIS) which provides a central framework for citizens to verify their identity electronically. Initially it supports government services with private sector integration being added by late 2026. It includes a Relationship Authorisation Manager (RAM) for authorizing users to act on behalf of businesses. 
  2. There is a voluntary Accreditation Scheme for Digital ID Providers for public and private sector providers to ensure high standards of privacy, security, accessibility, and usability. This is managed by the Digital ID Regulator, currently the ACCC, with legal oversight by the Office of the Australian Information Commissioner (OAIC) for privacy matters. 

The scheme also defines different proofing levels when it comes to verification which defines what ecosystem players can use and provide.  

  • Basic (IP1/IP1+): Lower verification requirements. 
  • Standard (IP2/IP2+): Requires verification of two or more official IDs. 
  • Strong (IP3): Adds biometric checks for high-risk transactions, like opening financial accounts or applying for tax file numbers 

Within the Australian Digital ID framework, the system allows accredited Identity Service Providers (ISPs) like myGovID to link government-issued credentials, including state-issued mobile licenses, directly to a user’s digital identity profile. These licenses are: 

  • Verified against issuing authorities (e.g., state transport or licensing agencies) digitally. 
  • Checked for authenticity without sending physical copies. 
  • Updated automatically in some cases when users renew, change address, or modify details with the issuing agency, depending on state cooperation. 

The use of a mobile app ensures credentials are readily available for online or in-person identification, and biometric verification can be added for stronger proofing levels (IP3). This setup reduces the need to carry physical documentation and improves convenience while maintaining strong safeguards for privacy and security. 

Queensland’s Digital License: A Case Study in Success 

One of the most compelling examples of this progress is Queensland’s Digital License app. Since its statewide launch in late 2023, the wallet app has attracted more than a million users or 25% of Queensland’s population, a testament to its usability and the appetite for digital solutions. The wallet has been used for over one and a half million credentials comprising of driving licenses, marine recreational licenses and proof of age card. Built to comply with international standards such as ISO/IEC 18013-5, the app ensures interoperability with future global systems while maintaining a strong focus on security and privacy. 

What makes the Queensland model stand out is its user-centric design. Rather than forcing individuals to share all their personal details, the app allows selective disclosure – so if you only need to prove your age, you can do so without revealing your address or license number. This method, which integrates biometric authentication and a strong data protection strategy, provides the highest possible level of security.  

Why It Matters for Individuals and Businesses 

For individuals, the benefits are immediate and tangible. No more fumbling for a physical wallet or worrying about losing your license. Updates happen in real time, and the ability to control what information you share gives users a sense of empowerment and privacy that traditional IDs lack. 

Government and businesses, too, are reaping the rewards. Digital identity verification reduces onboarding times, cuts down on paperwork, and lowers the risk of fraud. Retailers, hospitality venues, and financial institutions can verify customers quickly and securely, creating a smoother experience while reducing operational costs. Government agencies can communicate directly with citizens resulting in increased efficiency – for example more prompt payments.  In short, digital identity is not just a convenience – it’s a competitive advantage as well as a driver of organisational efficiency. 

How Does Australia Compare Globally? 

While Australia has taken a pragmatic, state-and-federal approach, other regions are charting their own paths. In the European Union, the Digital Identity Wallet initiative under the eIDAS 2.0 regulation aims to create a single, interoperable identity solution across all member states. This ambitious project focuses on cross-border functionality, enabling citizens to use one digital identity for everything from banking to healthcare across the EU. Full rollout is expected by 2026, but pilot programs are already underway. 

With the recent announcement by Prime Minister Keir Starmer that a mandatory digital ID will become a legal requirement for proving the right to work by the end of this Parliament, things have radically altered in the UK. Unlike previous voluntary schemes, this initiative – dubbed the “Brit Card” – will be free of charge, app-based, and integrated into the GOV.UK One Login infrastructure. For those without smartphones, physical alternatives will be available. The government argues this will curb illegal working, reduce fraud, and modernize access to services such as driving licenses and welfare. 

The key difference lies in flexibility. Australia’s model emphasizes practical deployment and optional user adoption, while the EU concentrates on regulatory-driven interoperability, whereas the UK focuses on government service consolidation and reducing illegal migration through compulsory measures for the right to work. Each approach reflects regional priorities, but Australia’s emphasis on privacy, security, and real-world usability has positioned it as a global reference point. 

Looking Ahead 

Digital identity is more than a technological upgrade – it is an enabler of trust and innovation. In fact, trust in the Australian government has increased by over 5% since 2024 according to research done for the Thales Digital Trust Index 2025 so digital identity would appear to have helped increase trust and not diminish it. For businesses, it opens doors to new service models and operational efficiencies. For individuals, it offers security, convenience, and control in a world where digital interactions are the norm. As adoption accelerates, the question is no longer whether digital identity will become mainstream, but how quickly organisations and individuals will embrace it. 

Author

John Cullen

John Cullen

Strategic Marketing Director Digital Identity and Cybersecurity, Thales

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John Cullen

John Cullen

Thales