Australia’s Digital ID program is live and expanding, supported by the Digital ID Act 2024. While current usage is primarily across government services, the program is moving toward broader private-sector participation, including industries with high identity-risk profiles such as legal services.

For law firms, Digital ID should be understood as an additional identity assurance mechanism, not a replacement for existing AML/KYC, VOI, or professional due diligence obligations.

Firms do not need to change their compliance frameworks today. However, forward-looking practices should begin planning for how Digital ID may integrate with existing systems and workflows over the next 12–24 months.

Current status of Digital ID (Early 2026)

The Digital ID Act 2024 is in force, providing the legal and regulatory framework.
Digital ID is voluntary and Government-backed.
Millions of Australians already hold a Digital ID and use it to access federal services (ATO, myGov, NDIS and others).
Private-sector participation is not mandatory and is expected to be phased in, subject to accreditation and regulatory safeguards. InfoTrack is currently investing in DigitalID accreditation.

Key points for law firms

Digital ID is operational, but its use in private legal practice is neither compulsory nor widespread. Where Digital ID intersects with other legal compliance obligations, we have provided some guidance below.

AML/KYC obligations
Australian law firms, particularly those involved in property transactions, trusts and estates, company formations, and high-value financial matters, already perform KYC-style checks when formal AML obligations commence. Digital ID may support customer identification procedures by providing a higher-assurance identity signal for remote or digital clients; however, it cannot assist with source of funds, purpose of transaction, or ongoing risk assessment. Digital ID does not replace AML/KYC obligations as firms remain responsible for assessing risk, understanding the nature of the client relationship, and monitoring matters for suspicious activity.
Verification of Identity (VOI) in Property and Conveyancing
VOI remains a professional and regulatory requirement, particularly under participation rules for electronic conveyancing. As with AML/CTF, Digital ID may complement existing VOI checks for remote clients or early-stage onboarding, it does not remove the need for practitioner judgement, record keeping and compliance with jurisdiction-specific VOI standards. For conveyancers and property lawyers, Digital ID should be viewed as a supporting tool, not a substitute for VOI compliance frameworks.

What law firms should (and shouldn’t) do now

What firms should do

Lean on your technology providers who are actively involved in government consultation
Stay informed about Digital ID developments and timelines
Educate staff that Digital ID is an enhancement, not a shortcut

What firms don’t need to do

No system overhauls
No changes to VOI or AML processes solely because of Digital ID
No obligation to mandate Digital ID for clients
No reduction in professional judgement or due diligence

InfoTrack’s position and role

InfoTrack supports the Digital ID initiative as a natural evolution of identity verification, consistent with how the legal profession already operates. As an industry leader in ID verification, InfoTrack is actively engaging with government, advocating for the legal profession and focused on complementary integration, not disruption. InfoTrack’s Executive Head of Government Relations, Jerome Boutelet notes:

“The success of Digital ID for the legal profession depends on how well it complements existing systems and professional obligations. Our role is to ensure lawyers gain the benefits of stronger identity assurance without unnecessary disruption.”

“InfoTrack has always advocated for practical, profession-led innovation. We are working closely with the government to ensure Digital ID delivers maximum effect while respecting the due diligence processes lawyers already trust and rely on.”

If you would like to be actively involved in InfoTrack’s advocacy work with the government regarding DigitalID or AML/CTF, please email Jerome Boutelet.

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