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- 10 Jul 2027 EU Is your CDD flow ready for the AMLR?
- 1 Jan 2028 US Are your adviser clients ready for FinCEN’s AML rule?
- 31 Mar 2029 AU Is your initial CDD on the new AUSTRAC model?
- Now AU Tranche 2 is live. Is your AML/CTF program running?
Digital ID Act 2024: what it means for businesses that check identity
The Digital ID Act 2024 set up a voluntary accreditation scheme and a legal base for the Australian Government Digital ID System. From 1 December 2026 that system opens to the private sector, which makes Digital ID a real option for KYC.
- The Digital ID Act 2024 and its rules commenced on 30 November 2024.
- Accreditation is voluntary, but accredited Digital ID providers must meet privacy safeguards that go beyond the Privacy Act, and civil penalties can apply.
- The ACCC is the Digital ID Regulator, and the Information Commissioner regulates the Act's privacy safeguards.
- The government says the Australian Government Digital ID System (AGDIS) will support private sector participation from 1 December 2026, and businesses that use myID will start paying towards its cost from 1 January 2027 at the latest.
- Using a Digital ID is voluntary for individuals, and AUSTRAC allows third-party digital identity services for KYC if the data is reliable and independent.
What it is
The Digital ID Act 2024 sets the principles, governance and oversight for entities that provide or rely on Digital ID services. It is supported by the Accreditation Rules, Accreditation Data Standards, Digital ID Rules and AGDIS Data Standards, all of which commenced with the Act on 30 November 2024.
It does two main things. It puts the Digital ID Accreditation Scheme, which grew out of the Trusted Digital Identity Framework, into law. A provider can be accredited as an identity service provider, an attribute service provider or an identity exchange provider (section 9 of the Act defines each). And it gives legal authority to expand the AGDIS, which today runs on myID, the Relationship Authorisation Manager and an identity exchange operated by Services Australia.
On 26 June 2026 the Minister for Finance announced the next stage: private sector participation from 1 December 2026, and charges for businesses that use myID from 1 January 2027 at the latest, with final pricing to be settled after consultation. Individuals will keep using myID for free.
Who it applies to
The Act regulates the providers and relying parties who opt in. A firm that never accredits or joins the AGDIS is not regulated by it, though it may accept a Digital ID that an accredited provider issued.
- Identity service providers, attribute service providers and identity exchange providers that seek accreditation
- Relying parties approved to participate in the AGDIS, such as businesses wanting to accept myID
- Government agencies already participating in the AGDIS
- Individuals, who choose whether to create and use a Digital ID
For AML/CTF reporting entities such as banks, accountants, lawyers and real estate agents, the Act does not change customer due diligence duties. It adds a source of identity data they may choose to rely on.
What you have to do
Nothing in the Act forces a KYC business to accept Digital ID. If you choose to, these are the decisions and duties that follow.
- Decide whether Digital ID is one of your verification methods
Record the decision in your AML/CTF program, including which customers and risk levels it suits and what you do when a customer does not have or want a Digital ID.
Program decision - Check the data is reliable and independent
AUSTRAC says you can use third-party digital identity services to verify KYC information if the data is reliable and independent. It expects you to consider who maintains the data, such as a government body, and whether the system is secure and kept up to date.
- Apply to join the AGDIS if you want myID
Businesses must be approved by the Digital ID Regulator to participate as relying parties. The Digital ID Rules set fit and proper person, record-keeping and incident notification requirements for participants.
Application - Offer another way to verify
Creating and using a Digital ID is voluntary. The Digital ID System guidance says an entity cannot require an individual to create a Digital ID to receive or access a service, so onboarding needs an alternative route.
- Plan for myID charges
Businesses that use myID for their own services will contribute to its costs from 1 January 2027 at the latest. Final pricing has not yet been set.
Cost - Complete the rest of CDD
A Digital ID confirms identity attributes. AUSTRAC's initial CDD also covers beneficial owners, people acting for the customer, PEP and targeted financial sanctions status, and the customer's ML/TF risk.
What firms get wrong
Digital ID gets confused with a national ID card and with a CDD shortcut. It is neither.
The Digital ID System guidance and the Minister's June 2026 release both describe Digital ID as voluntary, with other ways to verify identity remaining available.
Until private sector participation opens, only public sector entities are eligible to participate in the AGDIS. The government's stated date for private sector participation is 1 December 2026, and joining requires approval.
It can help verify who an individual is. AUSTRAC's initial CDD still requires the other matters, such as beneficial ownership, PEP and sanctions status and the purpose of the relationship.
The Act builds on the Trusted Digital Identity Framework pilot, but adds legislated privacy safeguards, Information Commissioner oversight and civil penalties for accredited providers in some circumstances.
What happens when
- In force
Digital ID Act 2024 and its rules and standards commence; government entities can apply to join the AGDIS Source
- In force
Minister for Finance announces private sector settings and myID charging Source
- Commencing
AGDIS supports private sector participation; accredited private providers may be used by selected government services Source
- Commencing
Latest date businesses using myID begin contributing to its costs Source
- Not yet setProposed
Final myID pricing for business relying parties, after consultation Source
Not yet confirmed. We will update this when the date is set.
Also on the regulatory timeline.
Related guides
Questions people ask
What is the Digital ID Act 2024?
Commonwealth law, in force since 30 November 2024, that regulates accredited Digital ID providers and the Australian Government Digital ID System. It aims to give people secure, convenient, voluntary and inclusive ways to verify their identity online.
Will Digital ID be mandatory in Australia?
The government says no. Creating and using a Digital ID is voluntary, and alternative ways to verify identity remain available.
Who regulates Digital ID?
The ACCC is the Digital ID Regulator. It accredits services and approves AGDIS participants. The Information Commissioner regulates the Act's privacy safeguards, and an Office of the System Administrator runs the AGDIS day to day.
Can my business accept myID?
The government has set 1 December 2026 for private sector participation in the AGDIS. Businesses will need approval to participate, and those using myID will pay towards it from 1 January 2027 at the latest.
Can we use a Digital ID for AML/CTF customer due diligence?
AUSTRAC says you can use third-party digital identity services to verify KYC information if the data is reliable and independent. You still need to complete the rest of initial CDD. See our AML customer due diligence checklist.
How is Digital ID different from a biometric ID check?
A Digital ID is a reusable identity a person sets up once with a provider. A one-off check verifies a document and the person at the time of onboarding. Our guide to types of identity verification compares the methods.
Primary sources
Checked 5 Nov 2026. We review this page every 90 days and when the rules change.
Where StackGo fits
IdentityCheck does not accept the Australian Government Digital ID (myID) today. It runs a one-off biometric check instead, which does not depend on the client having a Digital ID. Accepting Digital ID or not is a choice for each firm's program.
- Biometric identity checks: a photo of a government ID document plus a live selfie with liveness, covering 12,500 document types from 230+ countries and territories
- DVS government document verification as an Australian add-on
- PEP, sanctions and adverse media screening, with ongoing monitoring of screened clients, for the parts of CDD a Digital ID does not cover
- Onboarding forms, including multi-entity forms that collect each person and entity on a structure, and risk assessment forms with scoring and enhanced due diligence steps
- It does not accept myID or other Digital IDs today
- It is not an accredited Digital ID provider under the Act and does not participate in the AGDIS
- It does not give legal advice on whether a verification method suits your AML/CTF program
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