Australia's long-awaited digital identity legislation has made its way to Parliament. 

The Federal Government has unveiled Digital ID Bill 2023, accompanied by a consultation period running until October 10. 

Finance Minister Katy Gallagher, speaking at the Australian Information Industries Association, outlined the key principles guiding this legislation: security, convenience, voluntariness, and inclusivity.

The primary goal of this legislation is to address the current limitations of the digital identity system, which has operated without formal legislation. 

Gallagher pointed out that the current system lacks national coverage, limiting the government's ability to verify individuals using biometrics beyond their passports. 

Additionally, the myGovID can only access government services, restricting people's choices, and private sector providers cannot biometrically verify government-issued IDs.

Gallagher presented a four-phase roadmap for the digital ID rollout. 

Phase one involves establishing the ID in legislation, incorporating regulations, and accrediting public and private providers. 

In phase two, state and territory digital IDs will be recognized for accessing Commonwealth government services. 

Phase three introduces myGovID for private sector use, such as opening bank accounts. 

Finally, phase four entails the government acknowledging private sector digital IDs.

The Australian Competition and Consumer Commission (ACCC) is designated as the regulator for digital IDs. 

The ACCC's responsibilities include accrediting digital ID services, approving participation in the Australian government digital ID service, and ensuring legislative compliance among providers and services.

Privacy aspects of the scheme will fall under the jurisdiction of the Information Commissioner. 

The proposed Digital ID rules also mandate cyber security incident reporting for digital ID providers and services. Any security breaches or fraudulent access to credentials must be reported to authorities within 24 hours.

While the government aims to streamline identity verification and enhance security, the legislation will maintain voluntariness, ensuring that individuals have choices when accessing government services. 

The government also emphasises inclusivity, recognising that not everyone may have the necessary identity documents or access to digital services.

The government sees its digital identity legislation as a significant step towards establishing a secure, convenient, and inclusive national digital ID system in Australia.