Australia’s Audit Office Considers Reviews of Digital ID, CDR, and AI Governance

Australia’s draft 2025–26 audit program includes potential reviews of the country’s flagship digital transformation initiatives, with the Australian National Audit Office (ANAO) identifying the Consumer Data Right (CDR), digital identity systems, and emerging technology frameworks as key candidates for scrutiny. While the final selection of performance audits remains pending, the proposed evaluations signal growing oversight of public-sector technology programs.

Digital Identity, CDR, and AI Frameworks Under Review

The proposed audit of the Consumer Data Right would examine the design and implementation of a scheme that gives Australians control over their personal and financial data. Initially launched in 2020 for the banking sector, the CDR has since expanded to include the energy sector, although further rollout to telecommunications and insurance was paused in late 2024.

Another potential audit would evaluate the architecture, delivery, and governance of the federal government’s digital identity system. The review comes at a critical time, as Australia’s Digital ID Bill awaits passage through the House after receiving Senate amendments earlier this year. It also coincides with international developments, such as the UK’s adoption of new digital identity standards under its 2025 Data (Use and Access) Act.

The ANAO is also considering an audit of the frameworks established by the Digital Transformation Agency (DTA) to guide the use of emerging technologies, including artificial intelligence, within the public sector. This reflects an ongoing international shift toward more structured AI oversight and ethical guidance.

PsiQuantum Investment Review Left Out

Absent from the draft program is a previously proposed audit into specialist investment vehicles used for government funding, including the controversial $470 million investment in quantum computing firm PsiQuantum. That audit was included in the 2024–25 plan after then-shadow science minister Paul Fletcher raised concerns about the structure of the deal, which was facilitated through Export Finance Australia. Instead, the 2025–26 draft program includes a more general item on government investment management, without specifically referencing the PsiQuantum transaction.

Each of the proposed audits aims to assess the effectiveness, transparency, and outcomes of public digital initiatives. The final audit selections will be made following a public consultation period and the Auditor-General’s approval later this year.

Source: InnovationAus

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By Cass Kennedy