NDIS (National Disability Insurance Scheme) Minister Bill Shorten has announced a new digital ID verification system that he says will allow Australians to control their data.
During his speech at the National Press Club of Australia on Aug. 13, Shorten said his department would collaborate with the Finance and Treasury Departments to develop the “world-leading” project Trust Exchange, or TEx.
According to the minister, the new system would not duplicate the digital ID currently being promoted by the Labor government.
Instead, it would build upon investments already made in that system, including all the consultation and the digital ID infrastructure.
“TEx is something brand new and world-leading. It is not a wallet, nor an app, nor an ID, but rather, it is a secure means by which to exchange with a third party who you are, your identity and what you can do, your credentials,” Shorten said.
“TEx will use myGov and myGov ID to make the sharing of personal information more secure and trustworthy.”
myGov is an online portal run by the federal government that provides a wide range of government services to people living in Australia, including tax services, medicare, and social welfare.
Shorten also noted that the new system had the potential to give Australians control of their data, which he said could rival the “golden standard” for data protection regulation in Europe, but without European regulation and complexity.
“We’re opting for the carrot over the stick because individuals, business, and government all win from this, and where most other jurisdictions have a centralised ID with a number from birth,” he said.
What Benefit Can TEx Provide?
Shorten said TEx would provide three benefits to users: choice, consent, and trust.“Choice—you choose what information is shared and with whom it is shared,” he said.
“Two, consent—you deliberately consent to every bit of the information that you share.
“Three, trust—the information shared is trusted because the system imposes rigorous privacy and security standards to validate its authenticity.”
The NDIS minister also said TEx could be used to verify a person’s identity without the need to exchange any information.
He gave the example that with TEx, a customer at a local pub did not have to show any document to prove that they were 18 or above.
Shorten explained that customers could use their phones to pay at a TAB gambling machine, and a digital token indicating that they were 18 or over would be sent to the club.
“So this token will be a valuable, reliable promise to the club but of zero value to a cybercriminal because the confirmation token will not contain any personal information,” he said.
“All that’s been exchanged is a digital thumbs up from the government that you are who you say you are.”
In another example, the minister said a customer could use their myGov app to scan a QR code at the front desk to verify their identity when booking a hotel room without having to produce a driver’s license or passport.
Moreover, Shorten said the new system would reduce the collection, storage, and sharing of data across the economy.
“It can save businesses money, as it significantly reduces their customer onboarding procedures and their data storage requirements,” he said.
The minister added that a number of high-profile, significant cyber incidents and data breaches in Australia in recent years showed that the government needed to take different approaches to data protection.
“If we let the private industry carry out the business needing to store less and less personal information, then through a different mechanism, we’ve actually achieved some of the best policy goals of the GDPR (General Data Protection Regulation),” he said.
Nevertheless, Shorten noted that TEx would be an opt-in system where businesses needed to sign up to use it rather than a compulsory one.
When Will TEx Be Rolled Out?
At present, TEx is in the proof of concept stage. However, Shorten said between now and December, TEx would establish the ability to issue a verified credential, selectively share information, and prove identity without sharing information.“Over the next few months, we will add Medicare, DVA [Department of Veterans’ Affairs], organ donor, and concession cards,” he said.
Concerns About Digital ID
While the Labor government is promoting digital ID as a solution for protecting Australians’ data, some politicians have raised concerns that it could pose a threat to freedom and democracy.The bill provides a legal framework for the Australian government’s Digital ID system and sets up an accreditation scheme for entities that provide digital ID services.
It passed the Parliament in May and is expected to take effect in November 2024.
In a recent interview, Antic said the country was walking into a “digital surveillance state trap.”
At the same time, the senator said he had no confidence that the government could keep people’s data safe with its digital ID system.
“We’ve seen numerous data breaches over the private sector, and we’ve seen numerous parliament house hacks and all sorts,” he said.
“So this is a massive honey pot of data that will be built for hackers who will just go to this like moth to a flame.
“This is a really bad idea, [and] that’s why I’ve introduced a digital ID repeal bill into the Senate, and it’s been co-sponsored by a number of other senators.”
