The Australian Government is preparing to introduce a controversial new identity verification system, sparking concerns about privacy and potential government overreach.

The system, dubbed the "Trust Exchange" or TEx, will allow businesses to verify individuals' identities using a government-issued QR code linked to their MyGov Wallet or digital ID, eliminating the need for physical documents.

Government selling something with the word “trust”.

Runnnnnnnnn for the hills!!!! https://t.co/S9YavEYlTC

— Andrew Bogut (@andrewbogut) August 13, 2024

Government Services Minister Bill Shorten unveiled the technology at the National Press Club this week. He described TEx as a tool that "would give Australians the ability to verify their identity and credentials based on official information already held by the Australian Government."

Shorten insists that the system will enhance privacy, stating:

"That means sharing only the personal information to get the job done, and in some cases, not handing over any personal information at all."

The TEx system is intended for use in everyday scenarios such as hotel bookings, job applications, and age verification at pubs or RSL clubs. Instead of handing over a driver’s licence or passport, users will scan a QR code and choose what information to share. Shorten claims that the QR codes will "digitally shake hands with your MyGov wallet," leaving a record in the user's account of what was shared and with whom.

Despite assurances, the rollout of TEx has already raised alarms. Critics argue that the system could lead to increased government surveillance and a loss of individual privacy.

Concerns have also been voiced about the security of the data and the potential for misuse. Although TEx is still in the proof-of-concept stage, it is set to launch later this year.