The rise of digital identity is transforming these analogue processes. Digital identity initiatives involve the use of new technology to verify individuals’ identity. Done well, this can increase convenience for citizens, reduce privacy and other risks, and save money for government and the private sector. However, digital identity brings its own risks that must be understood and addressed in order to realise the promise of a more secure and effective way of verifying people’s identity.

New South Wales has been leading the way – compared with other Australian jurisdictions, and also many other nations – in the digital transformation of government services. In April 2022, the NSW Government committed to establishing a Digital ID for the people of New South Wales. This program aims to make it safer and more convenient for people to complete identity-based administrative tasks while handing back greater control to individuals of their digital identity and credentials.

Without effective protections, individuals are at risk of harm, and community trust in government can be undermined. As Service NSW develops authentication and verification processes for Digital ID, there is a need to ensure that appropriate regulatory and governance systems protect New South Wales citizens and build a firm foundation of trust and public benefit.

This paper reflects on this process of collaborative policy-making and presents key recommendations for best practice governance and training in relation to the development and rollout of government digital identity initiatives. The authors observe the challenges in developing data and artificial intelligence (AI)-enabled tools for government service delivery, with the aim of solving complex privacy and security problems while improving the lives of citizens.