Here’s the essay explaining the privacy-first, token-based verification formula and how it could be applied across many areas — driver’s licences, passports, work permits, bank accounts, and more — while avoiding the pitfalls of traditional digital ID schemes.
---
A Privacy-First Formula for Universal Identification Verification
In the modern world, verifying identity is essential for countless activities — driving, international travel, opening a bank account, securing a work permit, or even accessing certain online platforms. Traditionally, this process involves handing over physical identification documents or uploading digital scans to third parties. While effective for confirming identity, such practices expose personal data to unnecessary risk, contributing to data breaches, identity theft, and public mistrust of digital identity systems.
A new approach is emerging — one that uses verification tokens and purpose-specific government checks to confirm eligibility without exposing the full identity record. This privacy-first formula combines secure government databases with limited-scope verification results to create a safer, more trustworthy system for identity validation in any context, online or offline.
---
The Core Formula
At the heart of the system lies a simple process:
1. Person → The individual seeking to prove their eligibility for an activity.
2. Token → A physical or digital verification key, issued by the relevant authority, that links to their record but does not reveal it directly.
3. Database → A secure, government-controlled database containing the authoritative record (e.g., licence validity, passport status, tax file number, work permit details).
4. Service Granted → The result, returned to the verifying party, containing only the information necessary to make a decision — nothing more.
This is a yes/no + permission level model: the system confirms whether a person is eligible without disclosing sensitive details such as address, full date of birth, or document number.
---
Applications Across Sectors
1. Driver’s Licences
Instead of handing a physical licence to a car rental company or a security guard, a person presents their token — either a smartcard, NFC-enabled device, or QR code. The system checks the licensing database and returns only:
> “Valid Licence – Class C – Expiry 2028”
No address or extra personal data is shared. For roadside police checks, law enforcement would have higher-authority access to see the full record when legally required.
---
2. Passports and Travel
For domestic flights, airport security could scan the token to confirm:
> “Valid Passport – Nationality AU – Expiry 2032”
Airlines would not need to store a full passport image. For international borders, the physical passport remains mandatory, but the token could streamline pre-flight checks, hotel check-ins, and other travel verifications without duplicating sensitive data.
---
3. Work Permits and Employment
For offline jobs or work permits, a token linked to the immigration or employment authority’s database could confirm:
> “Valid Work Authorisation – Full-Time – Expiry 2025”
Employers would know the individual’s right to work without storing copies of visas or permits.
---
4. Banking and Financial Services
Opening a bank account currently requires handing over copies of driver’s licences, passports, and utility bills. With token verification, the bank could scan the token, check the relevant authority, and receive confirmation:
> “Identity Verified – Meets KYC Requirements”
This satisfies legal compliance without holding sensitive documents in multiple private databases.
---
5. Online Platforms and Social Media
In income-generating environments, such as monetised social media accounts or freelance marketplaces, the token could verify:
> “Eligible to Earn – Minimum Age Requirement Met”
This aligns age verification with tax compliance (via the TFN system) while avoiding the need to share ID scans with a global tech company.
---
Security and Privacy Advantages
Minimal Data Exposure: Only the essential “permission result” is shared, never the raw ID data.
Decentralised Checks: Each authority verifies only its own area — no centralised mega-database combining all records.
Consent-Based Use: The token only works when presented by the user, preventing unauthorised lookups.
Offline-Compatible: Physical smartcards or printed QR codes allow the system to function even without internet access in certain scenarios.
---
Public Trust and Legislative Fit
The biggest obstacle to current “digital ID” proposals is public fear of surveillance and misuse. This token-based verification model avoids those concerns by:
Not tracking every interaction centrally.
Limiting the scope of each check to a single purpose.
Keeping sensitive identity data under the exclusive control of the issuing authority.
Legislation would need to permit limited-purpose verification APIs for driver’s licences, passports, TFNs, and other official credentials. Privacy protections would include prohibiting storage of raw identifiers by private companies and requiring audits of all verification transactions.
---
Conclusion
This token-based identification verification formula has the potential to transform how individuals prove their eligibility for essential activities — from driving to banking to working — without sacrificing privacy. By limiting the scope of each verification to a simple “yes/no + permissions” result, it protects citizens’ personal data while meeting legal, security, and compliance requirements.
It is a practical, scalable, and trust-building alternative to traditional digital identity systems — one that could be deployed in Australia and adapted globally to safeguard both privacy and access in the digital age.
---
Here’s how that could work in practice.
---
1. Core Concept
Instead of carrying a driver’s licence or passport number everywhere (or having your ID scanned into dozens of private company systems), you’d use a government-issued verification token — physical or digital — that proves you’re entitled to do a thing (drive, fly, enter a secure building) without revealing all your personal data.
This token system uses the same principles as the TFN verification I described:
Verification is done by the issuing authority (RMS/Service NSW for licences, Passport Office for travel documents, ATO for TFNs).
The checker only gets a yes/no + permission level response.
The actual licence/passport number and personal data stay private.
---
2. Example: Driving with a Privacy Token
1. You apply for a driver’s licence normally through your state’s roads authority.
2. Along with the physical card, you’re issued a secure chip card or app-generated QR code token.
3. When police or a hire car company needs to check your licence:
They scan the token.
Their system pings the RMS database.
RMS returns “Valid Licence – Class C – Expiry 2028” (and maybe photo confirmation for law enforcement only).
4. The checker never gets your address, date of birth, or card number unless legally required.
---
3. Example: Passports & Air Travel
1. You renew/apply for your passport as normal.
2. You’re given both the physical passport (still needed for international border control) and a travel verification token (could be embedded NFC chip or linked QR code).
3. At an airport domestic security gate or airline check-in:
Staff scan your token.
The Department of Foreign Affairs system returns: “Valid Passport – Nationality AU – Expiry 2032”.
No unnecessary personal details are shared with the airline — only what’s legally needed for your travel.
4. International travel would still require your physical passport at immigration, but all pre-checks (airline booking, secure lounge access, domestic flights) could be handled with the token.
---
4. What the “Token” Could Be
Physical smartcard (like a bank card with a chip).
QR code on paper or in an app (expires regularly to prevent cloning).
NFC-enabled key fob or small wallet card.
Could even be integrated with your existing bank card chip in the future for convenience.
---
5. Day-to-Day Life with the System
You’d carry:
Your physical passport for international travel.
Your physical driver’s licence card (law still requires it in some states) — but most checks would use the token, meaning your actual card is rarely handled or scanned.
Your token (could be on your phone, watch, or wallet card).
Whenever you need to prove eligibility:
You present the token.
The token system checks with the government database.
The other party gets only the green light + necessary permissions, not your full personal record.
---
6. Why It’s Better Than a Digital ID
No centralised “big brother” file — each department only verifies its own data (RMS for driving, Passport Office for travel, ATO for work).
Consent-based checks — no one can query your status without your token.
No extra personal info leaked to third parties.
Works offline with physical backup (smartcard or printed QR) for people who don’t use smartphones.
---
If we wanted, I could map this out visually to show:
Person → Token → Department Database → Yes/No Result → Service Granted
… so you could see at a glance how the same principle applies to driving, passports, and even travel check-ins.
Do you want me to make that flow diagram next? It would tie the TFN, licence, and passport systems together in one picture.
Alright — here’s a draft proposal written in a way that you could hand to a government department or a politician.
It’s framed to be clear, apolitical, and privacy-focused, avoiding all the “digital ID” baggage while explaining the benefits in terms of security, youth protection, and economic opportunity.
---
Proposal: TFN-Based Work Eligibility & Age Verification System for Online Platforms
Presented to: Department of Communications / Department of Employment and Workplace Relations / Treasury
Prepared by: [Your Name / Organisation]
Date: [Insert Date]
---
Executive Summary
Current online age verification policies often require individuals to provide private companies with highly sensitive personal identification documents such as passports or driver’s licences. This approach carries significant privacy risks, is susceptible to data breaches, and discourages participation.
We propose a Tax File Number (TFN)-based work eligibility and age verification system that allows individuals to prove they are legally permitted to earn income — and, by extension, meet age requirements — without disclosing unnecessary personal information to private companies.
This system would be secure, privacy-preserving, and narrowly focused, avoiding the scope creep and public concerns often associated with digital identity schemes.
---
Problem Statement
Children and underage users are increasingly targeted by online content and services that require age restrictions for safety and compliance.
Current solutions (e.g., uploading photo ID to a private company) expose sensitive personal data to unnecessary risk.
Proposed digital identity systems raise public concerns over centralised tracking, data aggregation, and civil liberties.
For platforms designed to enable users to earn income (e.g., social media monetisation, gig work platforms), there is no direct link between age verification and tax compliance — creating both regulatory and enforcement gaps.
---
Proposed Solution
Introduce a TFN-based verification API operated by the Australian Taxation Office (ATO) or an authorised secure intermediary. This system would:
1. Authenticate that the TFN provided is valid and active.
2. Check the individual’s date of birth in the ATO database.
3. Return to the requesting platform only:
✅ “Eligible to Earn” (meets legal working age requirements)
❌ “Not Eligible” (below minimum working age)
Optional: “Restricted Minor” flag for under-18 accounts with legal limitations.
4. Never share the actual TFN, full date of birth, or other personal information with the private platform.
---
System Flow
1. User Sign-Up → User chooses “Earn Income” on an online platform.
2. Redirect to Secure Government Portal → User logs in via MyGov or another ATO-approved channel.
3. TFN Verification → ATO confirms work eligibility based on legal age requirements.
4. Result Token Returned → Platform receives a simple “yes/no” eligibility flag.
5. Account Permissions Applied → Based on result, the account is set up for income generation or restricted.
---
Benefits
Privacy & Security
Platforms never store TFNs, photo ID scans, or sensitive address data.
Verification happens entirely within secure government infrastructure.
Data returned is minimal and non-identifying.
Regulatory Alignment
Aligns with existing ATO rules for income reporting and tax withholding.
Encourages compliance in the growing online economy.
Meets age restriction requirements for child safety online.
Economic Opportunity
Enables young Australians (e.g., 14–17-year-olds) to participate in legitimate online work opportunities under the same rules as offline employment.
Reduces barriers for adults seeking to monetise online platforms.
Public Acceptance
Avoids the perception of a centralised “digital ID” tracking system.
Transparent, narrowly scoped, and consent-based.
---
Legislative Considerations
Amend the Privacy Act 1988 and Taxation Administration Act 1953 to permit TFN verification for this narrowly defined purpose.
Define “minimum working age” for online income-generating activities, potentially harmonising with offline employment laws.
Establish penalties for misuse or unauthorised storage of TFN-related verification data.
---
Implementation Roadmap
Phase 1 — Design & Legislation (6–9 months)
Consult with the ATO, OAIC, and key industry stakeholders.
Draft legislative amendments.
Develop the secure verification API.
Phase 2 — Pilot Program (6 months)
Partner with select online platforms that facilitate income generation.
Test verification flow with volunteer participants.
Conduct privacy and security audits.
Phase 3 — Rollout & Expansion (12 months)
Make the API available to all registered income-generating platforms.
Public education campaign highlighting privacy and youth protection benefits.
---
Conclusion
A TFN-based verification system offers a privacy-first, purpose-built alternative to current online age and identity verification methods. It leverages existing secure government infrastructure, aligns with Australia’s income tax framework, and avoids the pitfalls of digital identity schemes.
By adopting this approach, Australia can protect minors, enable legitimate online work, and enhance trust in digital platforms — all without creating unnecessary privacy risks.
---
Here’s the one-page briefing note you could hand to a minister, MP, or senior department official.
It’s concise, uses plain language, and focuses on the benefits first, so they see why it matters before the technical details.
---
Briefing Note – Privacy-Friendly Age & Work Verification for Online Platforms
Purpose:
To propose a secure, privacy-preserving method for verifying age and work eligibility on online income-generating platforms without requiring photo ID uploads or introducing a digital identity system.
---
The Problem
Online platforms increasingly require users to prove their age to protect minors and meet legal obligations.
Current solutions force people to upload sensitive ID (passports, driver’s licences) to private companies — creating privacy risks and public distrust.
Proposed “digital ID” systems face strong public opposition due to fears of centralised tracking and misuse.
Platforms enabling income generation (e.g., social media monetisation, gig work) have no streamlined link between age verification and tax compliance.
---
The Proposal
Use the existing Tax File Number (TFN) system as the basis for a secure government-run verification service.
How it works:
1. User opts in to “Earn Income” on a platform.
2. Redirected to a secure ATO/MyGov portal.
3. User enters TFN and basic info for verification.
4. Government checks:
TFN validity.
Age meets minimum legal working requirement.
5. Government returns only:
✅ “Eligible to Earn”
❌ “Not Eligible”
Optional: “Restricted Minor” flag for under-18s.
6. Platform never sees the TFN or personal details.
---
Key Benefits
Privacy – No ID images or TFNs stored by private companies.
Security – Uses existing secure ATO infrastructure.
Compliance – Aligns with tax and workplace laws.
Youth Protection – Blocks underage monetisation while enabling legal youth work.
Public Trust – Not a digital ID, no centralised tracking, consent-based.
---
Legislative Needs
Amend the Privacy Act 1988 and Taxation Administration Act 1953 to permit TFN verification for narrowly defined online work eligibility purposes.
Define “minimum working age” for online work in line with offline employment laws.
---
Why Now
The online economy is expanding rapidly; more Australians, including young people, are earning income digitally.
We can protect minors, enhance compliance, and build public trust without introducing controversial digital ID systems.
This system could position Australia as a world leader in privacy-conscious digital regulation.
---
Contact: [Your Name & Organisation]
Date: [Insert Date]
---
Yes — in fact, what you’ve just described is essentially an ID verification system without being a “digital ID” in the way people usually fear it.
Here’s why it works as an alternative:
---
1. How It’s Different from a Digital ID
Digital ID systems (like proposed national identity wallets) often store multiple pieces of personal information in a centralized database and can be used for tracking across many services.
Your TFN verification system would not store identity data centrally for ongoing use — it’s a one-time age/work eligibility check through a secure channel.
The platform never gets your TFN or other private details — only a “Yes/No” or “Eligible/Not Eligible” flag.
---
2. How It Functions as an ID Verifier
You prove your identity indirectly by having the government confirm that the TFN matches your details and meets the legal requirements.
This avoids creating a universal tracking system — it’s transactional verification rather than persistent identity.
In practice, it could replace the need for driver’s licences, passports, or “digital ID wallets” in any context where the goal is just age verification and work eligibility.
---
3. Why Governments Might Agree
They already handle TFNs securely under strict laws (in Australia, the Privacy Act 1988 and the Taxation Administration Act).
This approach doesn’t create new infrastructure for mass surveillance — it uses an existing legal and secure verification process.
It could even improve tax compliance because income-generating platforms would be tied into the tax system from day one.
---
4. Potential Framing to Avoid Pushback
Not a digital ID → It’s a work eligibility check, nothing more.
No central personal data sharing → The TFN never leaves government systems.
Consent-based → You only use it if you want to earn money through the platform.
Limited scope → No location tracking, no profile linking between unrelated platforms.
---
5. Practical Use Cases Beyond Social Media
Gig economy jobs (Uber, Deliveroo, etc.) could onboard workers without passport/driver licence uploads.
Online freelance marketplaces (Fiverr, Upwork) could verify users without collecting more personal data than needed.
Age-restricted online marketplaces could confirm minimum age without knowing your address or full identity.
---
If this was done right, it could replace the “digital ID” narrative with something narrower, safer, and purpose-built — but it would still require legislative tweaks so TFN checks could be legally used for private-sector onboarding.
---
Alright — here’s how a privacy-friendly TFN-based age verification system could work if social media was structured as an income-generating platform.
---
1. Core Idea
Instead of handing over a driver’s licence or passport, a user proves their age and work eligibility via a secure government verification service using their Tax File Number (TFN).
The social media platform never stores the TFN itself — it only gets a yes/no confirmation about age eligibility.
This treats joining the platform more like being hired for a job.
---
2. Step-by-Step Flow
Step 1 – User Signup
1. User chooses “Sign up to earn income.”
2. The platform redirects the user to a secure government portal (ATO or MyGov integration).
---
Step 2 – Government Portal Verification
1. The user enters their TFN, date of birth, and basic identity confirmation (e.g., name).
2. The government system checks:
TFN validity (exists, active).
Age (meets minimum requirement — e.g., 14.9 years for casual work in some states, or whatever law applies).
3. The system returns a token to the social media platform that simply says:
✅ Eligible to earn
❌ Not eligible
Optionally: Age category (e.g., “minor – restricted account” or “adult – unrestricted”).
---
Step 3 – Account Creation
1. The social media platform receives the token (no TFN data).
2. The account is created with the appropriate permissions based on the token result.
3. Any payments earned through the platform are linked to the user’s bank account (as per normal gig work rules) with tax withholding handled automatically if needed.
---
3. Privacy Safeguards
No TFN stored by the social media platform — it’s all handled by the government portal.
Limited return data — the platform only knows “eligible” or “not eligible.”
Audit & compliance — regular audits to ensure TFNs aren’t being logged, shared, or cross-referenced improperly.
---
4. Benefits
No photo ID scans to private companies.
Automatic tax compliance for income earned.
Consistent age verification based on official records.
Simple onboarding for platforms designed for income generation.
---
5. Challenges & Requirements
Government cooperation to create a TFN verification API for private platforms.
Legal amendments to allow TFN use for this purpose (currently highly restricted under the Privacy Act).
International adaptation (different tax ID systems in other countries).
Additional safeguards for under-18 users (e.g., parental consent workflows).
---
If this were implemented, it could effectively turn “social media work accounts” into mini gig-economy jobs with the same onboarding process as casual employment — just faster and more privacy-friendly.
---
Absolutely—your idea is not just novel; it actually taps into several global strands of privacy-first innovation that have gained traction in both tech and policy circles. Here's how your concept compares with existing work around the world:
---
Real-World Precedents for Smart, Minimalist Identity Verification
1. Microsoft’s Verifiable Credentials (Decentralized IDs)
Microsoft has been developing a decentralized digital ID system using verifiable credentials—essentially, cryptographic tokens people can share instead of raw personal data. For example, someone could share confirmation of their student status without exposing their full transcript. These digital credentials are being piloted at institutions like Keio University and governments like those of Flanders and the NHS.
---
2. Privado ID, eIDAS 2.0 & Age Verification Tokens in the UK/EU
Privacy-first age verification is already being explored in Europe. Using Zero-Knowledge Proofs (ZKPs) and tokens, providers like Privado ID and AgeAware enable websites to confirm a user’s legal age without revealing their identity. Tokens might say something like "user is over 18," with no personally identifiable data attached.
---
3. Yoti Keys for Anonymous Age Checks
Yoti offers a system where a Yoti Key serves as a portable, privacy-preserving token. It confirms age-related criteria (e.g., “over 18”) upon presentation without sharing any other personal information. The key syncs across devices and keeps the record minimal and anonymous.
---
4. Privacy-Preserving Research & Zero-Knowledge Proofs
Academic and tech communities are increasingly turning toward zero-knowledge proofs, tokenization, and selective disclosure frameworks. An IEEE-backed framework even addresses integration with existing ID systems—only revealing the bare minimum, such as "valid license," while withholding extra personal details. GitHub-hosted ideas and research like ZKP-based verification systems also support the broader privacy-preserving ethos your idea embodies.
---
5. France's Data Protection Authority (CNIL) & Age Verification Recommendations
France’s CNIL recommends third-party, privacy preserving systems for age verification to minimize both traceability (verifier identifying the user) and recognition of the service used.
---
6. Australia’s Trust Exchange (TEx)
Closer to home: Australia is already prototyping something strikingly similar. The proposed Trust Exchange (TEx) would issue verification tokens—essentially digital thumbs-ups—from government to businesses instead of relying on users handing over ID copies. These tokens act as a simple confirmation of authenticity or eligibility (age, identity, etc.), without revealing underlying data. Pilot programs were slated to begin by early 2025.
---
At a Glance: How Your Idea Maps to Real-World Examples
Feature Your Concept (Token-Based Verifier) Real-World Analogues
Minimal Data Disclosure “Yes/No + permission level” only Microsoft Verifiable Credentials, Yoti Keys, Privado ID
One-Time, Consent-Based Use User presents a token; never reveals raw identity TEx tokens, CNIL age verifiers, decentralized IDs with selective disclosure
Compatible with Existing IDs Works with driver’s license, passport, TFN, etc. IEEE integrated frameworks, Privado, Microsoft/Verifiable Credentials
Offline/Physical Option Smart card, NFC, QR token possible Smartcard options, Yoti QR keys
Broad Use Cases Driving, banking, travel, banking, gig work TEx + global DID pilots + corporate credentialing efforts
---
Key Insight:
Your concept is well-aligned with a growing global direction—privacy-first, tokenized, minimalist credential systems. Whether through academia, technology pilots (like Microsoft’s or Yoti’s), or government regulatory innovation (Australia’s TEx), elements of your idea are not only feasible—they’re already emerging.
---
