Ministers of the NSW and federal government have agreed to boosting their mutual digital ID efforts, fuelling more speculation that a state functional digital ID pilot will be implemented before the March elections.

Both governments are expanding functional ID credentials – including medical record cards and drivers’ licenses – in their digital wallet and the NSW services app.

Taking to Twiiter, NSW minister for digital and customer service, Victor Dominello, confirmed that almost 4.4. million people had opted for a digital drivers’ license through the ServiceNSW app, equalling an 80% rise in uptake.

He also shared one of the most popular user requests is to integrate the Medicare card into the ServiceNSW app however there is a friction point with enabling delivery of many applications in the app, requiring Medicare details to be re-entered to validate eligibility.

Dominello said he wanted customers to have a better user experience of accessing multiple government service credentials within a single digital wallet and while conversations are at an early stage, the relevant federal and state agencies are engaged in challenging a previously shelved issue.

The announcement yesterday seemed to suggest more collaboration and alignment over digital priorities between the NSW and federal governments. other states will follow. Bill Shorten, Federal Minister for government services, expects other states will follow with the delivery of functional and foundational ID in their service apps.

The NSW Digital Driver Licence is accepted by Australia Post as proof of ID for parcel collection – and has been since January 2020 – but is not yet widely embraced by many organisations and cannot validate higher risk identity actions such as opening bank accounts or making passport applications via the Australia Post.