Australian Regulator Proposes Digital ID for Prepaid SIM Verification

The Australian Communications and Media Authority (ACMA) has opened consultation on amendments that would allow telecommunications providers to use accredited Digital ID services when verifying customers for prepaid SIM activations.

Proposal Details

The proposed changes apply to the Telecommunications Service Provider (Prepaid Public Mobile Telecommunications Services) Determination 2017. Currently, identity checks for prepaid SIM registration are limited to document-based methods such as presenting passports, driver’s licenses, or other government-issued credentials.

ACMA’s proposal would formally recognize Digital ID as a compliant verification method, provided that operators implement an ACMA-approved compliance plan under Part 5 of the Determination. The regulator has invited feedback on the proposal through its consultation process.

Policy Context

The move comes less than a year after the Digital ID Act 2024 came into effect, which created a national accreditation framework and established the Australian Government Digital ID System (AGDIS). The Department of Finance is currently consulting on updates to Digital ID Rules and Accreditation Rules, while the Attorney-General’s Department is reviewing changes to the Identity Verification Services framework.

The proposal aligns telecommunications rules with the broader policy shift toward government-accredited digital identity systems. In February, Telstra integrated ConnectID to support mobile service verification, demonstrating industry appetite for more secure and streamlined options. Other sectors are already adopting Digital ID under the new regime, including tax services, following the Australian Tax Office’s mandate.

Why It Matters

Allowing Digital ID for prepaid activations is intended to reduce fraud linked to SIM swaps and the use of forged or copied identity documents. It also promises a smoother customer experience by enabling remote, on-device verification in place of manual uploads.

By aligning telco KYC requirements with accredited Digital ID schemes, the proposal could also accelerate interoperability with other sectors already connected to AGDIS or brokered identity exchanges. The change reflects a broader government effort to reduce the handling of sensitive personal documents by private companies.

What’s Next

The consultation does not yet specify a commencement date for the amended rules. Key questions include whether ACMA will restrict verification to AGDIS-accredited providers only, or also recognize bank-brokered exchanges such as ConnectID. Another point to be clarified is how Digital ID will be applied in retail settings compared with online activations, and whether parallel rules will be introduced for number porting under the Pre-Porting Identity Standard.

Sources: ACMA consultation, ACMA explainer, Department of Finance

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By the ID Tech Editorial Team