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The Law Council of Australia has called for the upcoming national digital ID system to set a new benchmark for privacy and cybersecurity as the nation revisits its privacy regulations.
In early July, the Law Council, representing Australia’s legal professionals, submitted a series of recommendations to the Department of Finance. These include implementing a consent mechanism and self-sovereign identity (SSI) structures, which would allow users to submit specific attributes rather than their full identity. For instance, users accessing social media would only need to prove their age rather than providing complete personal details.
The importance of cybersecurity has come under heightened scrutiny following the 2022 Optus data breach. In response, the Albanese Government has reported that new identity protections have prevented over 300,000 fraud attempts in the past 18 months. Additionally, the government plans to allocate AU$11 million (US$7.2 million) over four years to support those affected by identity theft due to the breach.
The Law Council is also advocating for reforms to Australia’s Privacy Act to include consumer rights to take action in cases of privacy violations. Discussions about updating the 1988 Privacy Act aim to enhance online safety, combat identity fraud, and protect minors. In February 2023, the Attorney-General’s Department released a Privacy Act Review Report, with the government accepting 38 of the 116 recommendations fully and agreeing in principle to 68 others, pending further consultation.
The draft legislation is anticipated to be presented by August 2024.
Australian Investment in Cybersecurity and Digital ID Faces Budget Constraints
While digital identity and cybersecurity are key technology trends for Australia in 2024, the nation is facing budgetary constraints. Despite a significant increase in government spending, consulting firm Gartner reports that Australia’s budgets are shrinking.
Dean Lacheca, Gartner’s vice president and research analyst for public sector and government, highlighted the ongoing austerity measures, describing them as among the tightest in recent cycles. Gartner forecasts that federal departments and agencies will spend over AU$19 billion (US$12.4 billion) on IT services in 2024, representing a 9.3 percent increase from the previous year. Of this, AU$11.7 billion (US$7.6 billion) will be allocated at the federal level.
The federal budget has designated AU$1.8 billion (US$1.1 billion) for enhancing the safety and efficiency of government services over the next three years. Specifically, AU$206.4 million (US$135.4 million) is allocated to upgrade cybersecurity for regulators and registers, while AU$288.1 million (US$189 million) is earmarked for the national digital identity program.
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