What Happens If You Refuse Australia’s Digital ID in 2025?
A Choice Every Aussie Faces
“Do you want to use your Digital ID to log in?”
That little pop-up will soon be everywhere in 2025 — from government websites to banks, telcos, and even utilities. Some people welcome it as a safer, quicker way to prove who they are online. Others feel uneasy, worried about privacy, control, or government overreach.
So here’s the big question: what happens if you refuse Australia’s Digital ID in 2025? Let’s break it down — with a real-life style story, backed by facts and figures.
First Things First: What Is Australia’s Digital ID?
Think of Digital ID like a digital version of your driver’s licence or passport. Instead of handing over photocopies of your birth certificate, licence, and bills every time you need to prove who you are, you use a single secure login.
Here are the basics:
- It’s not a card – there’s no new plastic card in your wallet. Your Digital ID lives in apps like
myGovID or other accredited services. - One login, many services – as of 2025, you can use it for over 130 government services
(tax, Centrelink, Medicare, licence renewals, etc.).
Australian Government Digital ID System - Private sector rollout – in the next couple of years, banks, telcos, and even utilities will be allowed to join.
Data & Digital Roadmap - Security – your data isn’t stored in one big government database. Instead, accredited providers store only what’s needed, and they must meet strict privacy rules.
- Voluntary (for now) – the
Digital ID Act 2024
makes clear that no one can force you to use it. By law, you must always be given another way to prove who you are.
👉 In short: it’s a digital passport for the internet. Convenient, but controversial.
Haven’t We Already Had an “ID”? The Tax File Number Story
Here’s the funny thing: Australians already have something close to a national ID — the Tax File Number (TFN).
- Every Aussie who earns money needs a TFN.
- It’s a 9-digit number, the same format as the United States Social Security Number (SSN).
- For decades, TFNs have quietly acted as a kind of “citizen ID” — used by the ATO, banks, and employers to track income, taxes, and superannuation.
So while Digital ID feels new, the truth is: Australia has already been running a centralised ID system of sorts. The difference? The TFN is limited to tax and finance, while Digital ID spreads across everyday life — health, banking, utilities, licences, and more.
That’s why the shift feels bigger and scarier to many people.
But What About Security?
This is the million-dollar question: If all my eggs are in one basket, doesn’t that basket become a hacker’s dream?
Here’s how it actually works:
- Not One Giant Database – your Digital ID isn’t stored in one central spot. Each accredited provider (like myGovID or future private-sector players) holds only the data they need.
- Fewer Copies of Your ID – ironically, using Digital ID can reduce risk because you aren’t uploading photocopies of your licence, passport, or utility bills to dozens of different companies.
- Strong Security Rules – accredited providers must meet strict requirements around encryption, two-factor authentication, and independent audits. Oversight comes from the
ACCC and the
Office of the Australian Information Commissioner. - History Shows Risks Are Real – in 2022, the Optus and Medibank hacks exposed millions of Australians’ data. Critics argue Digital ID just creates a bigger target. Proponents argue it’s safer because fewer businesses will store sensitive documents.
👉 Bottom line: it’s not “all eggs in one basket,” but it is fewer baskets. Whether that feels safer or scarier depends on your level of trust in government and big tech.
The Future of Digital ID: Safe or Hackable?
Right now, Australia’s Digital ID uses strong encryption and independent oversight to keep your identity safe. But what happens when superintelligent AI or quantum computers enter the picture?
- Quantum Computing Threats – Today’s encryption relies on maths problems that would take classical computers billions of years to crack. A full-scale quantum computer could break many of these in minutes.
- Superintelligent AI Risks – A rogue or malicious AI could discover exploits humans haven’t even thought of yet. In the hands of bad actors, this could mean automated large-scale identity theft.
- Arms Race in Security – Governments and tech companies are already developing post-quantum cryptography — new forms of encryption designed to survive quantum attacks. But the race is on.
AI Probability Forecast (simplified):
- Digital ID Security (2025) – ~85% safe for most Australians. Strong protections, but still vulnerable to human error and leaks.
- Digital ID Security (2030, with early quantum computing) – ~60% safe unless post-quantum upgrades are in place.
- Digital ID Security (2040+, with superintelligence in play) – Drops to ~40% if bad actors weaponise AI and quantum before governments harden defences.
👉 In other words: Digital ID is fairly safe today, but its long-term survival depends on upgrading encryption before quantum computing and superintelligence arrive in full force.
The Tale of Ellie: The Refuser
Ellie is an everyday Aussie. She loves tech but hates handing over control of her identity.
When asked to sign up for Digital ID, she politely says “No thanks.”
At first, it seems fine. For a licence renewal, the service centre tells her she can just bring physical documents. Easy enough.
But the cracks soon appear.
- At the bank, she’s told: “We prefer Digital ID — it’s faster.” Without it, Ellie has to provide multiple certified documents and wait longer for approval.
- When signing up for a new mobile plan, she’s bumped into a “manual verification” queue that takes days instead of minutes.
- For government services, she can’t access the one-click online process and has to juggle paperwork and counter visits.
Ellie’s refusal doesn’t block her from services. But it slows her down, adds red tape, and sometimes costs more.
Digital ID in Australia: Pros vs Cons
Here’s a simple snapshot for anyone weighing up whether to use Digital ID or not:
✅ Pros (Why Some Say Yes)
- Convenience – One login for tax, Medicare, Centrelink, licences, and more.
- Less Paperwork – No need to scan and upload multiple documents every time.
- Faster Service – Instant verification instead of waiting days or weeks.
- Better Security (in theory) – Fewer copies of your ID floating around at different companies.
- Private Sector Expansion – Banks, telcos, and utilities joining means more everyday use cases.
❌ Cons (Why Some Say No)
- “All Eggs in One Basket” Fear – If a Digital ID provider is hacked, the fallout could be massive.
- Trust Issues – Many Australians worry about government overreach or misuse of data.
- Not Truly Optional Long-Term – While legally “voluntary,” refusing may push you into the slow lane for services.
- Risk of Function Creep – Once established, the system could expand into more areas of life than originally promised.
- History of Data Breaches – Optus and Medibank hacks show even big companies aren’t invincible.
What the Numbers Say
- 97.1% of Australians are online in 2025 (26.1 million people).
- 55% already have a Digital ID (through myGovID), but only 34% realise it.
- 86% of Australians say Digital ID providers must be strongly regulated for privacy.
- The government has invested $288 million in Digital ID infrastructure, with $57.4 million set aside in the 2024–25 budget to keep it running.
(Source: Digital Lives of Australians 2025 Report, DataReportal, Services Australia Budget Papers)
Should You Refuse?
At the end of our story, Ellie makes a compromise. She uses Digital ID for everyday low-risk tasks (like licence renewals), but avoids it for more sensitive matters.
That balance gives her convenience and some privacy.
The truth is: refusing Digital ID in 2025 is your right, but it comes at a cost. You’ll still be able to access services — just slower, harder, and sometimes more expensive.
Final Word
Australia’s Digital ID system isn’t compulsory — but the world is moving digital-first. If you refuse, you won’t be locked out… but you may feel left behind.
Like it or not, the “slow lane” is where non-Digital ID users will spend most of their time in 2025 and beyond.
✅ Tip for Readers: Stay informed. If you choose not to use a Digital ID, always check your rights, keep your physical documents up to date, and be ready for extra steps.
💬 What do you think? Will you adopt Digital ID or stick to the old ways? Drop a comment below — we’d love to hear your thoughts.
#DigitalID #Australia2025 #Privacy #CyberSecurity #QuantumComputing #SuperInteligence #TheOriginalPCDoctor
All statistics cited are from the Australian Bureau of Statistics and reflect the most recent available data as of September 2025.
Content Created on 29/09/2025 by
John Pititto
Managing Director
The Original PC Doctor
You have not mentioned buying groceries or shopping in general, paying for utilities or paying for petrol, or going out to eat. Will everything be more expensive if you don’t have a digital ID
Excellent point, Binh — you’re absolutely right.
The article focused mainly on identification, compliance, and access issues, but daily life examples like buying groceries, paying for petrol, utilities, or dining out definitely deserve more attention.
If the Digital ID system eventually links to payment platforms or government verification layers (like MyGovID + banking integrations), these everyday activities could become indirectly tied to the system — especially if merchants or service providers start requiring verified logins for certain transactions.
That said, for now, basic shopping and payments should remain unaffected, since those rely on your bank or card provider rather than government ID systems. The concern is more about what happens if integration expands in future updates or mandates.
My bank sent me an Email requesting I update my personal details threatening me with the following. What happens if I don’t provide this information?
If we don’t receive all the information required by the due date, we may restrict access to your account(s). Restricting access means that:
• you will be unable to use your transaction accounts (including but not limited to cards, ATMs and phone banking);
• payments to and from your savings and transactional accounts will not be made (including deposits, direct debits and scheduled payments);
• if you have any lending products, you will be unable to draw down on any available limit;
• you will not be able to apply for new products; however
• you will still retain access to view your account(s) via internet banking.
If your account is restricted, it will stay restricted until you provide the information requested and we have updated this in our systems. Is this black mail??
A Rep from the bank rang to discuss my update, once we established I was me I was asked to supply the balance of my account. I refused and expressed my discomfit with it and I was going to hang up and did. I rang the bank back through a alternate number and spoke to another rep who enticed me into suppling details for a Digital ID to be established I asked if this was the case he said yes. I told him I was unhappy with this and should have been informed of his intent. I feel helpless now with the threat of my accounts being closed. I had been using a two step verification system until it mysteriously stopped working. Have I got any options other then submission.
Hi Allan,
Thanks for sharing your experience — you’re absolutely right to be cautious. What you’ve described raises several red flags. Genuine banks never ask for sensitive details such as your account balance over the phone or via email links. Even if an email looks official, it’s important to verify independently — which you did correctly by calling the bank back on a verified number.
Unfortunately, scammers often use social engineering tactics — fear, urgency, or threats (like account restrictions) — to pressure people into giving up personal information. While banks do occasionally request identity updates to meet government compliance requirements, they will never:
Demand your account balance or PINs over the phone.
Force you to provide information through a link or email.
Create a “digital ID” without clear explanation and consent.
If you’re unsure whether your account has really been flagged for updates, log in directly to your bank’s website or mobile app (not through email links) or visit a branch in person.
It’s not exactly “blackmail,” but it is high-pressure compliance messaging — and scammers mimic this tone to appear legitimate. Given that your two-step verification stopped working, it might be worth asking your bank to reset your online access and re-enable multifactor authentication immediately.
You still have options:
Report the incident to your bank’s fraud department.
Change your passwords for both your email and online banking.
Run a security check on your devices to ensure no malware or keyloggers are installed.
Forward the suspicious email to report@cyber.gov.au
(Australia’s official cybercrime reporting centre).
You did the right thing by refusing to give personal details. Trust your instincts — if something feels off, it usually is.
Stay safe online,
The Original PC Doctor Team
Hi, I’m a registered BAS Agent and have had Digital ID for 6-7 years so that i can do my clients BAS. I recently used it to access MyGov as i had changed my phone and couldn’t get in via username and password. I made a new MyGov account the other day, logged in and linked to Medicare to make a claim. Then tried to link the ATO. It linked but refuses to let me in to do my tax. The error code says because i have used MyID before I have to keep using it. I believe this is in breach of the voluntary clause in the act. Any advice please.
Dear Paula,
Thank you very much for taking the time to comment and share your situation — your experience is far from isolated and it helps illuminate the broader system issues.
I, too, have encountered consistent difficulties: each time I attempt to access the myGov app, I receive error codes, then have to call support, and often end up with no resolution ( other than try again later ) . What’s more concerning is that the government expects us to rely on this system for essential services — tax, Medicare, social support — even when its performance is inconsistent at best.
It calls to mind the frustrations many Australians have with the NBN: we pay increasingly higher fees in the hope of dependable digital infrastructure, yet often experience slower speeds and constant system failures where 3 outages a day is within specifications for them. How can we trust critical government platforms when they struggle to maintain basic reliability?
If others here have faced similar blockages — especially during tax time or while linking ATO, myGovID, or myID — please do share. Your stories help build collective awareness, push for change, and assist others who may be stuck in the same trap.
Warm regards
You are told you already have several forms of digital ID, and the kind of thing on offer today is no different.
Not true!
Older IDs such as those used for drivers licences, passports, taxation etc are numbers that can be changed if necessary.
What they want you to use now is a digital record of your unalterable personal characteristics.
Held FOREVER and used against your interests.
To control you.
This is not about simple numbers identifying you for your security.
What many groups want as Biometric Digital ID is as seriously dangerous as any of the Government versions being opposed by thinking people around the world.
For example, the Australian Commonwealth Bank Netbank accounts linked to the phone app will now not open without giving them permission to harvest Biometric data to identify you.
“By tapping ‘Accept & continue’, you consent to CommBank collecting information such as device information, installed apps, typing patterns, scrolling or swiping activity while you use the CommBank app.”
Don’t be fooled by the innocent sound of the information they want to capture from your usage. The data they want is no less critical than your fingerprints or iris scans.
Do not comply.
They’ll make life extremely difficult for those who don’t consent to the collection of their biometric data, but those who take the easy path in accepting the dictates of government, bureaucracy and business will eventually bitterly regret their compliance.
And, once given, consent for your data to be collected can NEVER be withdrawn. Your biometric profile will be held PERMANENTLY, and used against your interests in very many ways.
Warn everyone about this – to protect your freedom, and that of future generations.
You raise some very valid concerns, and you’re right — biometric data like facial recognition, fingerprints, or behavioural metrics can carry serious long-term privacy implications if not properly secured or regulated.
However, it’s important to separate legitimate issues of data misuse and consent from some of the broader fears. Not every form of digital ID automatically involves biometrics or permanent tracking. Australia’s proposed Digital ID framework, for example, still allows you to choose not to link biometrics, and independent verification providers must meet strict privacy and security standards under legislation.
That said, your point about “consent creep” is crucial — once you start agreeing to app-level behavioural tracking or facial unlocks, that data can easily become part of a much larger profile. Everyone should stay alert, read the terms, and speak up if private companies or government agencies start demanding biometric data unnecessarily.
The best path forward is public pressure for transparent oversight, revocable consent, and clear limits on data sharing — not blind compliance, but not fear either. Awareness and accountability are the real safeguards of freedom.
Hi, I am wanting to know if I will be able to even keep the internet connected (with service provider) and access it to buy online without a digital id in 2026?
Hi Nathan — thanks for your comment and for raising an important question.
Short answer: Based on current information, you won’t be forced to get a digital ID under the Digital ID Act 2024. The system remains voluntary, and you’ll still be able to access the internet and buy online without one.
However, there are a few key points to be aware of:
While voluntary, refusing to use a digital ID may mean extra steps or slower processing when dealing with some services that adopt the system.
From late 2026, private companies — including banks, telcos, and retailers — may begin offering or requiring digital ID as an optional login or verification method, which could make some processes easier for those who use it.
If you choose not to participate, you may still need to verify your identity through traditional methods (like passports, driver’s licences, or manual forms).
As an alternative, if you’re concerned about how your data interacts with government networks or national infrastructure, you can consider Starlink as your internet provider. Starlink operates its own satellite-based network and is not bound to the National Broadband Network (NBN) infrastructure, giving users a degree of independence from Australia’s national telecommunications systems.
That said, all providers operating in Australia must comply with certain telecommunications and data laws — so while Starlink is outside the NBN, it’s still subject to general Australian regulations.
In short: you won’t lose internet access without a digital ID, but over time, opting out might mean a bit more friction when dealing with certain services.
Thank you.
My pleasure and great question!
Something that very few are considering is the impact of another Carrington or Miyake event. It would be catastrophic in any case, but if everything is linked digitally to everything else, this would make the problems even worse. An article in LiveScience (30 Oct 2025) said: ‘Worrying new simulations show that a solar storm on par with the infamous Carrington Event could potentially wipe out every single satellite orbiting our planet, leaving us in a precarious and expensive predicament.’ And it would not just affect satellites.
Having our whole lives dependent on digital infrastructure and centralised data seems to me to put us in a dangerous situation, as does assuming it will never happen. We came close in 2012.
The European Space Agency did a simulation earlier this month and concluded: ‘The question is no longer theoretical. Every technological advance increases exposure to this natural hazard. Each new satellite, each power grid extension, and every additional network connection ties human life more tightly to systems that cannot survive a full geomagnetic storm. The simulation’s conclusion was not optimism but inevitability. The Sun will erupt again at full power. When it does, Earth will have only minutes to react.’
I will continue to take (non-digital) precautions, keep physical backups, IDs and records as well as the digital, use cash, etc., and I will say ‘no thanks’ to digital IDs. We need to make our lives more resilient and less dependent on digital interconnections.
You make an incredibly important point, Linda, and one that’s often missing from discussions about digital identity and the future of connected infrastructure. The possibility of another major solar storm—like the Carrington Event of 1859 or the more extreme Miyake events found in tree-ring data—isn’t science fiction; it’s a documented natural hazard with real potential to disrupt modern life.
As you noted, our dependence on digital systems has grown exponentially. Everything from national identity databases and power grids to GPS, telecommunications, and banking relies on satellites and data centers that are vulnerable to geomagnetic disturbances. If a severe solar storm were to hit today, the chain reaction could affect power generation, internet access, transport networks, and even critical emergency communications. The LiveScience article you mentioned underscores just how fragile the satellite layer of our infrastructure really is—losing it would have cascading effects on both digital and physical systems.
Your emphasis on maintaining physical backups and analog options—such as printed IDs, local copies of essential documents, and access to cash—is a wise and grounded approach. True resilience means having multiple layers of redundancy. The trend toward complete digital interdependence, while efficient in normal conditions, can become a single point of failure in extreme scenarios.
The European Space Agency’s simulation you cited highlights that this isn’t a theoretical issue anymore. As they said, every new connection—whether it’s an extra satellite, an expanded grid, or a new online identification system—adds convenience but also vulnerability. It’s not about rejecting technology altogether, but about ensuring that our systems are diverse, decentralised, and disaster-tolerant.
Your decision to say “no thanks” to digital IDs is an understandable stance from a risk perspective. It also opens up a larger public discussion: How do we make national digital systems robust enough to withstand catastrophic natural events? That includes solar storms, cyberattacks, and large-scale outages. Perhaps what’s needed is not rejection, but a dual-track strategy—one that allows digital convenience while preserving offline functionality and physical identity verification.
Thank you for contributing such a thoughtful and technically grounded comment. It’s a valuable reminder that resilience and preparedness must go hand-in-hand with innovation, especially when we’re building systems that affect every aspect of modern life.