06 min Read


Dec 12, 2023

How ‘Identity Verification Bill 2023’ Passed by the Australian Parliament Address Privacy Concerns?

Why the protection of confidential information is integral to the construction of legal frameworks linked to the adoption of digital identity solutions? In the face of rising cyber threats and unauthorized access, the incorporation of privacy measures becomes essential. As the world is shifting toward a digital future, it becomes crucial to comprehend why privacy becomes a precedence in identity verification. This understanding is key to shaping a digital landscape that is secure and reliable.

Misbah Tayib

Compliance Journalist

The Australian Parliament has passed legislation on identity verification services, which aims to support the operation of identity verification services. The government’s willingness to make “very significant concessions” involving 38 amendments has got approval by both the Opposition and Greens, highlighting collaborative efforts to address concerns. On 07 December, the House of Representatives passed the Identity Verification Bill and its accompanying Consequential Amendments Bill, without any objections. How do government bodies establish and enforce identity verification standards along with protecting individuals’ privacy and preventing fraudulent activities? Which systems and technologies are incorporated to facilitate to streamline verification processes, and how do these methods align with regulatory requirements?

Within the dynamic framework of global financial systems, digital identity solutions play a significant role, bringing about a revolution in how individuals access financial services across the globe. Employing advanced technologies, these solutions encompass Know-your-customer (KYC) and anti-money laundering (AML) protocols, aim to streamline the procedures, enhance security measures, and promote financial inclusion. From biometric Verification to blockchain-based identity verification, innovative strategies are reconstructing the user experience and amplifying the operational efficiency of financial institutions.

However, the quick digitization of identity has given rise to concerns regarding the privacy of users’ data. As personal information becomes more digitized and interconnected, individuals fear the potential misuse or unauthorized access to their sensitive data. Authorities are putting efforts to maintain a balance between the advantages of streamlined digital identity solutions and the preservation of users’ privacy, leading to the implementation of robust data protection laws. Governments are actively promoting public awareness to emphasize the importance of digital literacy and cybersecurity, encouraging a culture in the light of ever-evolving digital threats.

How Does the Australia’s ID Verification Bill Aims to Ensure Privacy Protection?

The approval of Australia’s Identity Verification Bill establishes a legislative framework supporting the functioning of the Commonwealth’s identity verification services, already in use by governments and agencies for verifying personal information on identity documents against government records. Following recommendations from the Legal and Constitutional Affairs Legislation Committee’s inquiry into the bill, the government has approved 38 amendments, primarily aimed at strengthening privacy protection measures within the framework.

Among the amendments receiving support is the introduction of ‘express consent’ rather than just ‘consent’ for utilizing an individual’s identity documents. Moreover, the changes involve aligning with the existing data breach scheme, prohibiting the use of captured information for data profiling, online tracking, or marketing, conducting a review of the laws after one year, and allowing the delay of operational provisions for up to six months.

Michaelia Cash, the Shadow Attorney-General voiced concerns about the bill being, “rushed into this place without warning” Despite this, she appreciated the “very significant concessions” made by the government and confirmed that the opposition will support the bill in its revised version.

David Shoebridge, Greens NSW Senator, stated that the amendments made the legislation “passable” and also highlighted it was “far from perfect”.

The federal government has also put forward legislation to lay down a legal framework and extend its digital identity program, addressing various similar privacy concerns and protective measures.

What Drives the Careful Consideration of Privacy Concerns?

The continuous evolution of digital identity solutions revolves around the adoption of cutting-edge technologies by both government and businesses marks a fundamental move towards enhanced security and efficiency. The widespread adoption of digital solutions is accompanied by challenges, with privacy concerns at the forefront. Governments and corporate entities embracing these advancements are aware of the significance of maintaining a balance between innovation and securing confidential information.

The surge in data breaches and cyber threats highlights the importance of implementing robust privacy measures. According to ‘Cost of Data Breach Report 2023’ by IBM, the average global cost of a data breach in 2023 reached approximately $4.45 million, a 15% increase over the past three years, emphasizing the financial implications and reputational harm associated with the mishandling of personal data.

Additionally, there are rightful concerns among individuals about sharing sensitive information in the digital world. Recent surveys indicated that 79% of consumers raise concerns about the privacy of their personal information. Individuals are becoming more conscious of the importance of personal information, leading to increased demands for clear practices and robust protective measures.

In response to these concerns, government and other entities are making efforts to integrate digital identity solutions that not only improve efficiency but also emphasize robust privacy frameworks. The UK government also proposing to make amendments to the Data Protection Laws to build an advanced data protection framework and mitigate fraud risks. The proposed bill targets to simplify the use of personal information to enhance efficiency, improve public services, and strengthen innovation in science and technology.


Misbah Tayib

Misbah Tayib is a compliance journalist and freelance writer with almost 6-year long experience of covering developments in blockchain sector, crypto industry, AML compliance, privacy regulations, and relevant political advancements