The Albanese government has agreed amend its proposed digital identity laws to ensure the private sector can join the scheme within two years in a bid to head off opposition to the long-awaited legislation in the Senate.
The amendments, which were circulated ahead of debate on Wednesday, also introduce new reporting requirements for law enforcement agencies that lawfully access biometric information during investigations.
The latest changes to the Digital ID Bill address lingering accessibility and privacy concerns with the already complicated economy-wide reform, which has been almost a decade in the making and cost close to $800 million.
Both the Coalition and the Greens had indicated they would oppose the bill that would pave the way for the expansion of the Australian Government Digital ID System (AGDIS) without amendments after it was cleared by a Labor-led Senate committee last month.
The three-month review heard complaints from banks, payment providers and lobby groups that the private sector should gain access to the AGDIS at the same time as state governments to prevent market distortions and restricted choice.
But the Economics Legislation Committee sided with the Department of Finance, which said the approach would allow parts of the system to prove they are working before adding more complexity, leading the Coalition to criticise what they described as a “Big Government” approach.
Amendments to the Digital Identity Bill proposed by the government on Tuesday will allow private businesses to apply to join the AGDIS within two years in a move designed to give interested businesses confidence that the system will be expanded.
Finance minister Katy Gallagher invited the Coalition, which also recommended delaying the Digital ID Bill until the Privacy Act review is complete, to back the government in “delivering a scheme which is safe, voluntary and will protect Australians in an increasingly online world.”
“The Coalition started this work while in government but in classic style didn’t finish the job,” Senator Gallagher said in a statement circulated on Tuesday ahead of the debate.
The government has also moved to address ongoing concerns about law enforcement agencies having the ability to request access to Digital ID information, including with a warrant or with the consent of an individual.
Although the bill has already been redrafted to increase restrictions on these powers, civil and digital rights groups have warned any access will “undermine trust”. The Greens recommended amending the bill to require that police have “reasonable suspicion” before accessing an individual’s digital ID data.
While the proposed amendments do not go this far, the government will require that law enforcement agencies and bodies that “access, or seek to access, personal information must report annually to the Attorney General and the Attorney General must report to Parliament”.
Other amendments to be moved by the government include preventing the reactivation of de-activated digital IDs without a persons’ consent, and further restrictions on data retain by identity service providers.
The government also said it would “support amendments that confirm the voluntary use of digital ID”, suggesting it could back amendments circulated by the Greens on Tuesday that would require businesses to have other means for accessing services that rely on the AGDIS.
The Greens amendments also include changes to improve accessibility of the scheme, protection against the inclusion of biometric technologies, and a stronger commitment to establishing a redress scheme.
Greens senator and digital rights spokesperson David Shoebridge has previously said that in the absence of reforms to the Privacy Act, the AGDIS offers a way to secure digital identities in the meantime.
The Digital ID Bill was introduced to Parliament last November after more than three years of development by both the Albanese government, and the former Coalition government before it, to regulate and expand the AGDIS.
Ms Gallagher last year said that if the consultation and bill progress as planned, the scheme could be in place as soon as mid-next year. The timeline could still hold true if the bill passed in the next parliamentary sitting in May.
