How a digital identity can create value for every Australian

Will a single digital identity prevent fraud or put vulnerable people more at risk of identity crime? Will it create a more connected, inclusive society, or widen divisions further?

Australians question the benefits of a single digital identity scheme, according to EY’s ongoing Connected Citizen research, which surveyed people across 19 countries to understand how people feel about the technology reshaping our lives. The latest phase of this research included some deep dive workshops with citizens, to really dig into their needs and expectations around key digital trends and services, including in government. Our conversations revealed people are largely excited about the potential of a digital government to improve how we live – enabling us to age healthily at home, for example, or more easily access benefits we are entitled to.

But their feelings about the prospect of a digital identity are more subdued. Many people aren’t confident that a digital identity will keep our data safe, that they will retain control over how it is used, and that technology will always be deployed ethically. They are not sure that a digital identity will deliver better outcomes for all of us, and some people are worried that the scheme could entrench equities and leave some Australians behind.

It’s an issue on our minds at EY too. We’re committed to helping the Australian public sector build exceptional digital services that contribute to positive societal and economic outcomes. We agree with the Albanese government that a digital identity will be crucial to this, and a key element of the government’s Digital Economy Strategy, which aims to position Australia as a leading digital economy by 2030.

But we’re also urging caution. Too many people already struggle to access the government support they need. A recent review of MyGov found that more than one-third of Australians have difficulties using digital government services. If we get it right, a digital identity could help close the digital exclusion gap, and contribute to shaping a more inclusive Australia – but if we get it wrong, mistakes will be devasting to citizens and to government. For example, a digital identity is likely to accelerate digitisation across the public and private sectors, creating a better experience for people who can easily and confidently access digital services. But for citizens who can’t, their ability to get the support they need could actually reduce, leaving them worse off.

How can Australia design and implement a digital identity that best supports those people who need it most? As momentum around progress grows, we suggest government focus on four key action points:

Co-design with all Australians, particularly those underserved by current digital services. Consultation is not enough – genuine collaboration is what’s needed. This will include, for example, working closely with different First Nations groups to understand how to meet cultural needs and respect the historical nature of identity. With accessibility also a key consideration of any digital identity, close partnership with disability support providers and organisations can help articulate workable solutions to common challenges. Throughout design and deployment, input from all citizens will be essential and enabled by both physical design hubs and online feedback portals.

Build trust through accountability and communication, which starts by first identifying responsibility for the digital identity. Services Australia is the obvious agency to take the lead, working with services delivery departments/agencies and key stakeholders. Together they can leverage existing communications channels to roll out a nuanced, but consistent communication plan that helps everyone, including people without strong digital or English skills, understand the digital identity and how it will benefit them.

Develop a cohesive, nationwide benefits-driven approach with Federal, State and Territory governments working together to leverage best practice. This is about collaboration, not competition! Focusing on citizen benefits can help unify jurisdictions around a common goal – to deliver digital solutions that create better outcomes for people, and cost savings for government.

Bring the private sector along, to enable a truly seamless digital identity experience for citizens. Engagement between government and industry leaders can help build buy in across the private sector - although the use of policies or mandates may need to be considered as well.

Creating value for every Australian

The Connected Citizens research indicates that Australians are ready to embrace more technology in their lives, and they have high expectations around the potential of a digital government. A digital identity is an opportunity to deliver on these expectations, but we must get it right. A human-centred approach that prioritises inclusion can create a scheme that creates long-term, sustainable value for our economy and every Australian.

You can read more in our article, “How to build a digital identity that supports our vulnerable citizens”.

The views expressed in this article are the views of the author, not Ernst & Young. This article provides general information, does not constitute advice and should not be relied on as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Liability limited by a scheme approved under Professional Standards Legislation.