Senate

Explanatory Memorandum

(Circulated by authority of the Minister for Finance, Senator the Hon Katy Gallagher)

Outline

1. The Digital ID (Transitional and Consequential Provisions) Bill 2023 (Bill) will deal with matters arising from the enactment of the Digital ID Bill 2023 (principal Bill) as the Digital ID Act 2023 (principal Act). The principal Bill will:

a.

Legislate and strengthen a voluntary Accreditation Scheme for digital ID service providers that wish to demonstrate compliance with best practice privacy, security, proofing and authentication standards.

b.

Legislate and enable the expansion of an Australian Government Digital ID System (AGDIS) for use by the Commonwealth, state and territory governments and eventually, the private sector. The use of AGDIS and participation of accredited service providers will be phased.

c.

Embed strong privacy and consumer safeguards, in addition to the Privacy Act 1988 to ensure people are protected.

d.

Establish governance arrangements including the Australian Competition and Consumer Commission as the Digital ID Regulator and an expanded role for the Information Commissioner as Privacy Regulator.

2. The Australian Government has been developing and administering an unlegislated AGDIS since 2015. The Interim Oversight Authority is responsible for safety, reliability and the efficient operation of the system. The Department of Finance (Finance) and Services Australia share this role. Services Australia has responsibility for day-to-day operational matters relating to the AGDIS, including its security and fraud control capabilities. Arrangements for the existing AGDIS are facilitated by non-binding memoranda of understanding. An existing policy framework - the unlegislated Trusted Digital Identity Framework (TDIF) - sets out technical standards for entities providing services in the unlegislated AGDIS, and provides a voluntary accreditation framework for entities who are not providing services in the unlegislated AGDIS. The Bill will deal with transitional matters arising from the principal Bill.

3. The Bill will also deal with consequential matters arising from the principal Bill, including amending the:

a. Administrative Decisions (Judicial Review) Act 1977;

b.

Age Discrimination Act 2004;

c.

Australian Security Intelligence Organisation Act 1979;

d.

Competition and Consumer Act 2010;

e.

Privacy Act 1988; and

f.

Taxation Administration Act 1953,

to support the operation of the principal Bill.

FINANCIAL IMPACT

4. The analysis in the regulatory impact statement number 1801 for the principal Bill applies to the compliance measures in this Bill. The regulatory costs of this option are estimated to be $1.5 billion per year, however these are offset by benefits across the whole of economy, estimated to be up to $3.3 billion per annum.

COMPATIBILITY WITH HUMAN RIGHTS

5. The Bill is compatible with human rights, and to the extent that it may limit human rights, those limitations are reasonable, necessary and proportionate. A Statement of Compatibility with Human Rights, prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011, is attached to this Explanatory Memorandum.