Australia stands at the forefront of digital government transformation, with digital identity emerging as a cornerstone of its strategy to deliver more accessible, efficient, and citizen-centric public services. As the uptake of myGovID accelerates and government investment in digital identity deepens, the nation is poised to unlock new levels of convenience, security, and satisfaction for citizens navigating key life events. Yet, this progress brings new challenges—particularly around trust, inclusion, and the evolving expectations of a diverse population. Here, we explore how digital identity is reshaping Australia’s public sector, the opportunities and barriers ahead, and the critical steps needed to ensure a secure, inclusive, and trusted digital future.
The adoption of digital identity in Australia has surged in recent years. In 2024, 73% of Australians reported having a myGovID login, up from just 60% the previous year. This growth is underpinned by a strong majority (94%) of users who agree that myGovID makes it easier to access government services. The government’s AU$288 million investment in Digital ID, alongside the rollout of the Digital ID Bill 2024, signals a commitment to making digital identity an even more integral part of public service delivery.
Digital identity solutions like myGovID are now gateways to a broad spectrum of services, from healthcare and taxation to social support and life-event administration. The benefits are tangible: users of myGovID are more than twice as likely to rate their digital service experiences as ‘excellent’ compared to non-users, and almost three times as likely to believe that government is improving in digital service delivery. This points to a digital strategy that is not only effective but also increasingly valued by citizens.
Digital identity is particularly transformative during major life events—moments when citizens most need seamless, reliable access to government support. Satisfaction rates among those who used digital services for life events are exceptionally high: 98% for marriage, 97% for starting a new job, and over 90% for events such as moving, buying a house, or experiencing a birth or death in the family. These figures underscore the power of digital identity to reduce friction, speed up processes, and provide reassurance during times of change.
However, a significant awareness gap remains. Nearly half (49%) of people did not use online government services for their most recent life event, and 36% did not even consider them. This highlights the need for proactive outreach and education to ensure all Australians can benefit from digital identity solutions, especially during critical moments.
Despite high satisfaction and growing adoption, trust in government data protection is waning. Over half of Australians (52%) have lost trust in the government’s ability to safeguard their data, with concerns about privacy, identity theft, and data manipulation rising sharply in the past year. High-profile data breaches have heightened public anxiety, particularly among younger citizens and those in financially vulnerable situations.
Trust is not just a matter of perception—it directly influences digital service uptake. Users who feel confident in the security of their data are more likely to engage with digital services and support their expansion. Conversely, those with doubts about data security are less likely to use digital identity solutions, especially among lower-income households, the unemployed, and those without university education.
To address these concerns, robust data governance, transparent communication, and privacy-by-design principles are essential. Citizens want clear explanations of how their data is used, stored, and protected, as well as mechanisms for recourse and control over their information. The government’s investment in secure digital identity systems, like myGovID, that minimize the amount of data citizens need to share, is a critical step in restoring and maintaining public confidence.
While digital identity is becoming mainstream, its adoption and comfort levels vary significantly across demographic lines. Younger Australians (Gen Z and Millennials) are the most likely to use and trust digital identity, with uptake rates of 84% and 81% respectively. In contrast, only 57% of Boomers and 52% of the oldest age group (Builders) have a myGovID. Urban residents are more likely to engage with digital services, while rural Australians face greater barriers, including digital literacy and infrastructure gaps.
Financial stress is a key impediment: 33% of low-income households struggle to find or use digital services, compared to just 23% of higher-income households. Vulnerable groups—including Indigenous Australians and people with disabilities—are above-average users of digital services and more open to AI-driven personalisation, but require additional support and accessible design.
Privacy and security concerns remain the most significant barriers to wider adoption of digital identity. In 2024, 56% of Australians expressed doubts about how the government keeps their data safe. Notably, users of myGovID are more likely to feel completely safe trusting the government with their data and have higher engagement with federal apps. This correlation between digital identity usage and positive digital experiences highlights the importance of building secure, privacy-first platforms.
The next frontier for digital identity in Australia is its expansion into business transactions and other sectors. Three-quarters of Australians support extending digital identity to reduce identity theft, limit data sharing, and streamline authentication processes. Younger Australians are especially enthusiastic about this expansion, which promises to further reduce friction and enhance security across the economy.
To fully realize the benefits of digital identity, Australia must address both technical and human dimensions:
Digital identity is transforming how Australians access government services, making them more convenient, secure, and responsive to citizen needs. Yet, the full potential of digital government will only be realized if trust is maintained and strengthened. By addressing privacy and security anxieties, closing the digital divide, and building citizen confidence, governments can ensure that digital identity is a force for inclusion and empowerment. Publicis Sapient stands ready to support government leaders in delivering digital transformation that is secure, ethical, and truly citizen-centric—unlocking a future where no Australian is left behind.