This post was written by EFA’s chair John Pane.
Electronic Frontiers Australia is deeply troubled by the Albanese government’s decision to backtrack on essential privacy and security protections for Australia’s new Digital ID scheme. Under pressure from powerful banking and technology sectors, the government has abandoned the requirement to keep all personal information generated by the Digital ID scheme within Australia. “This is a significant setback,” said EFA Chair John Pane, “as it means that sensitive data can now be transferred and stored offshore, increasing risks to privacy and security”.
This decision, given the Albanese government’s strategy to be a world leading cybersecurity exemplar by 2030 must be seen as a serious political ‘own goal’. What makes this even more concerning is the Albanese government has gone against the strong recommendation from the Department of Finance to keep all Digital ID scheme data in Australia.
“This serious policy backflip will wreak havoc on the trustworthiness of the Digital ID scheme for ordinary citizens who already feel helpless and concerned by the machinations of Big Tech, the Big Banks and Big Data,” said EFA Chair John Pane. “Australians need to know that our government is prioritising our privacy and safety, and not the profits of the digital surveillance economy”.
What is Data Localisation?
Data localisation has its roots in the concept of data sovereignty, which asserts that data must be subject to the laws and governance rules of the nation or region where it was collected. Mandating that the collection, processing, and storage of data must occur solely within a country’s borders, data localisation is the means by which a nation or region ensures that all data activities are governed by local regulations.
Why Is Data Localisation Important?
There are several reasons why data localisation is considered important by various governments, businesses, and individuals. Some of the main reasons include:
- Data privacy and security
One of the main motivations for data localisation is to enhance the security of sensitive data by keeping it within national borders. This ensures that all use of the data falls under Australian law and legal systems, reducing exposure to foreign surveillance and cyber threats. - Economic considerations
Data localisation boosts the domestic economy by requiring data to be stored and processed locally. This creates jobs and stimulates economic growth in the short and long term, benefiting the national economy. - National sovereignty
Data localisation allows the government to assert national sovereignty and enforce strong local legal protections over personal information. This minimises the risk associated with storing data on foreign IT infrastructure and prevents unnecessary privacy and security risks. - Improved performance
Storing data within Australia can enhance the performance and stability of online services, resulting in an improved and more reliable consumer experience. Local data storage reduces latency and access times, and mitigates security and reliability risks associated with foreign IT and telecommunications infrastructure.
Digital ID data must stay in Australia
All personal information collected by public and private sector participants in the Digital ID scheme must stay in Australia. To maintain the privacy and security of our personal information, we must use local data centres and IT infrastructure. The cybersecurity, privacy, and economic benefits to Australia are far more important than delivering cost savings to the Big Banks and Big Tech. These financial and tech giants already make eye watering profits, compromising our privacy and data security to fatten their already eye watering profits is unconscionable.
Public interests often take a backseat in government decisions. By donating to EFA, you support our genuine mission to prioritize the interests of the Australian people and their right to fair data privacy practices.
(Image credit: Unsplash/ rupixen)