Government pilots digital ID to make rental applications safer and easier

New pilot programmes have been announced by the Federal Government to streamline rental applications for Australians and enhance the protection of renters' personal data.

The pilots, led by the Department of Finance and Treasury, will assess how accredited digital identity and Consumer Data Right (CDR) technologies can be applied to real-world rental scenarios. Under the proposed system, renters could verify their identity and demonstrate affordability online, reducing the need to submit sensitive documents such as passports and bank statements.

Reducing paperwork

Minister Katy Gallagher described the rationale for the pilots, stating, "Applying for a rental shouldn't take hours and it shouldn't require mountains of sensitive information like your passport and fortnightly pay slips. This pilot is a no brainer - it will make people's lives easier, reduce the risk of data theft, and reduce the burden placed on the real-estate industry."

Currently, rental applicants often upload the same documents to multiple agencies and platforms, a process which can be time-consuming and raise data security concerns. The pilots will allow renters to verify their identity through organisations they already use - such as their bank - instead of repeatedly uploading sensitive documents.

Industry involvement

ConnectID, developed by Australian Payments Plus (AP+), has been selected for three out of four pilots. The company will work alongside consortia led by Commonwealth Bank of Australia, Ailo, and PropertyMe, testing fully digital rental application processes. ConnectID is the first private digital identity exchange to receive accreditation from the Australian Government, and is already working with property platforms including RentBetter and FLK it over.

"Applying for rental properties can already be stressful, and handing over personal documents shouldn't make it harder," says Andrew Black, Managing Director, ConnectID. "These pilots give renters a secure, simple way to verify their identity via organisations they already know and trust."

Black highlighted the involvement of various property platforms and outlined the sector's preparations for changes to identity verification regulations that will take effect from July 2026. These changes will introduce rigorous Know Your Customer obligations, including mandatory identity verification checks for property managers and agents.

"These pilots also play an important role in showing how digital identity can work in practice - giving people more control of their information, while helping businesses meet increasingly stringent privacy and security expectations," Black added.

Preparing for regulatory changes

The upcoming regulatory shift is expected to impact the property sector significantly, with increased requirements for secure management and verification of renter identities. In preparation, ConnectID has extended its privacy-focused identity verification tools across several industries including finance, telecommunications, technology, healthcare, NDIS, retail, and property, indicating a broader trend toward digital identity adoption.

With the pilots due to begin later in the year, the government and its partners are focusing on safer, more efficient approaches to rental applications that aim to protect personal data while reducing administrative burdens for both renters and property professionals.