Australia passes Digital Identity Bill for a ‘strong ecosystem’

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The Australian Government has enacted the Digital Identity Bill 2024 and the Digital Identity (Transitional and Consequential Provisions) Bill 2024.

This legislation will create a nationwide Digital Identity system, enabling financial institutions and providers to apply and integrate into the Government’s Digital Identity platform. The advantages of this system include a more robust and secure online environment for users.

The Acts also aims to motivate Digital Identity service providers to participate in the voluntary Accreditation Scheme, ensuring they meet the standards set by Australian regulators and uphold high levels of security and authentication.

Once the legislation receives Royal Assent, which is anticipated in the coming weeks, it will take effect in November 2024. By 2026, businesses will be able to join the Government’s Digital Identity system.

In a related development, the UK government unveiled its plan for incorporating Smart Data into the nation’s economic framework earlier this year. 

Supported by the Data Protection and Digital Information (DPDI) Bill, this initiative seeks to improve data portability and security for both consumers and businesses, fostering innovation and efficiency within the digital economy.

Rick Iversen, Head of Product and Scheme Digital Identity at Australian Payments Plus, commented: “It’s encouraging to see a commitment to realising the benefits that a strong Digital Identity ecosystem will offer Australian consumers and businesses. As we’ve always stated, the fewer times individuals share their identity documents, the fewer chances there are for data theft.

“We also welcome the announcement of $288m in the Budget to support the implementation and expansion of digital identity.”