A new digital-ID verification project called Trust Exchange (TEx) is set to empower Australians by allowing them to control how much personal information they share with businesses and services.

The initiative aims to streamline the identity verification process by eliminating the need for multiple forms of sensitive identification, relying instead on government-held information.

Government Services Minister Bill Shorten is championing TEx, describing it as a 'world-leading' technology that could rival the European Union's General Data Protection Regulation in terms of data control, but without its complexity.

Shorten plans to illustrate the practical applications of TEx, such as verifying age for nightclub entry or confirming qualifications for employment, while ensuring that shared confirmation tokens do not reveal personal information.

The TEx system will be integrated into the myGov digital wallet, allowing users to store sensitive information like date of birth and citizenship, and share only what is necessary for various transactions.

Users will have the autonomy to choose which details to share and will maintain a record of their shared documents, enhancing consent and trust in the process.

For instance, individuals can verify their identity and age at venues by simply scanning a QR code with their phone, ensuring that no personal data is retained by the venue.

Shorten expressed aspirations for TEx to set a benchmark in data protection, aiming to exceed current standards while simplifying the user experience.

Currently, TEx is undergoing an $11.4 million proof-of-concept trial, with plans for full implementation by the end of 2024.

The implementation of the TEx program will be overseen by Services Australia, which will collaborate with other government systems to ensure its success.

Despite its potential benefits, TEx faces opposition from a group of right-wing senators who label the project as draconian and claim it could become mandatory, although legislation states otherwise.

Shorten is set to provide further details about TEx during a speech at the National Press Club, where he will highlight its current status and future potential.