Digital ID expands to the private sector
SENATOR THE HON KATY GALLAGHER
Minister for Finance
Minister for Women
Minister for the Public Service
Minister for Government Services
Senator for the ACT
The Albanese Government is taking the Australian Government Digital ID System to its next stage, with the framework progressing to support private sector participation from 1 December 2026.
The additional investment in the budget will maintain and strengthen the system as it moves toward full operation under the Digital ID Act 2024 and opens the way for businesses to participate in the Australian Government Digital ID System.
The next phase of reform provides the policy certainty needed for private sector participation, while ensuring the Digital ID system remains secure, reliable and focused on protecting Australians’ personal information.
Under the policy settings, businesses that choose to use myID to provide their own services will begin contributing to its costs from 1 January 2027 at the latest. From 1 December 2026, accredited private Digital ID providers who join the Australian Government Digital ID System may used by selected government services, and will be able to charge commercially for their use.
Some government services will be able to choose whether to use private provider Digital ID services where this best meets their needs. This could include where a private Digital ID provider is better able to verify the identity of an individual who has foreign-issued identity documents than myID. Higher-risk services where fraud could significantly affect people’s financial circumstances will not accept a private Digital ID provider.
Government services will continue to use the government’s Digital ID services without charge, and individual users will continue to be able to create and use a myID for free. Charging will apply only to participating business relying parties, with final pricing to be settled following consultation. Further information on these settings is available in the Department of Finance’s statement .
Digital ID remains a voluntary way for individuals to access Government services, with alternate identity verification methods available if they prefer.
Digital ID is already helping millions of Australians access services more securely and conveniently. There are now 264 different government services that can be accessed using your digital ID. This includes 155 Commonwealth Government services and 109 state and territory government services.
In the 12 months from 1 May 2025 to 30 April 2026, there were more than 113 million authenticated transactions, compared with 36.5 million in the corresponding previous period.
Quotes attributable to Minister for Finance Katy Gallagher:
"This next stage of Digital ID reform will open the government system to private sector participation while keeping security, privacy and consumer protection at the centre."
"These policy settings give businesses greater certainty about how Digital ID will operate as the system expands, including arrangements for charging, provider participation and user choice."
"Digital ID is already helping millions of Australians access services more securely, and this reform lays the groundwork for a mature system that works across government and the private sector."
Kaarin Dynon 0422 772 215 Gallagher.Media@finance.gov.au