Australia's ID verification plan, explained: A 'digital thumbs up from the government'

Trust Exchange, or TEx, would remove the need for people to hand over multiple forms of sensitive ID and instead provide 'tokens' as verification.

The federal government has announced plans to introduce a new digital identification system, known as Trust Exchange, or TEx, which aims to streamline the process of verifying people's identities online.

Here's a closer look at how TEx would work, whether it will be mandatory, and when it might be available.

How would it work?

TEx is designed to make it easier for people to prove their identity online without having to hand over multiple forms of sensitive identification.

Instead, people would be able to create "tokens" that can be used to verify their identity with participating organisations.

For example, if you wanted to open a bank account, you could use a TEx token to prove your identity to the bank, rather than having to provide copies of your driver's license, passport, and birth certificate.

The tokens would be created and managed by accredited organisations, such as banks, telcos, and government agencies.

These organisations would be responsible for collecting and verifying people's identity documents, and for issuing tokens that can be used to prove their identity online.

TEx would also allow people to control how their personal information is shared with organisations.

For example, you could choose to share only your name and date of birth with a particular organisation, or you could choose to share more detailed information, such as your address or employment history.

The government says TEx will be built with strong privacy and security protections, and that people's personal information will only be shared with organisations that they have explicitly authorised.

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Will it be mandatory to use TEx?

The government has said that TEx will not be mandatory for people to use.

However, the government is encouraging organisations to participate in TEx, and it is likely that many organisations will choose to adopt TEx as the preferred method of verifying people's identities online.

This means that people who do not want to use TEx may still be able to prove their identity online using traditional methods, such as providing copies of their identity documents.

When might TEx be available?

The government has not yet announced a specific timeline for the introduction of TEx.

However, the government has said that it is working with industry and consumer groups to develop the TEx system, and that it will be rolled out gradually over time.

The government has also said that it will conduct a pilot program of TEx before the system is made available to the general public.

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