The Prime Minister, John Howard, has announced plans for the introduction of a national identity card, to be called a "smart card".
The card would have a biometric photo of the holder, and their name.
Other details, such as about the individual's Medicare and welfare payments, will be contained in a microchip.
Mr Howard says the card will not be compulsory, but will be needed to use government services.
"It is a systematic reorganisation of a system that involves a whole lot of cards. It has a biometric photograph. It requires people to apply. It stands to reason that if you have to go through that procedure the card itself will have high identity security integrity. The fact that you have to apply for it and prove who you are will sort a few people out."