EXPLANATORY STATEMENT
Approved by the Australian Communications and Media Authority
Telecommunications Act 1997
Telecommunications (Service Provider – Identity Checks for Prepaid Mobile Carriage Services) Amendment Determination 2025 (No. 1)
Authority
The Australian Communications and Media Authority (the ACMA) has made the Telecommunications (Service Provider – Identity Checks for Prepaid Mobile Carriage Services) Amendment Determination 2025 (No. 1) (the instrument) under subsection 99(1) of the Telecommunications Act 1997 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901 (the AIA).
Subsection 99(1) of the Act provides that the ACMA may make written determinations setting out rules that apply to service providers in relation to the supply of specified carriage services or specified content services, which are called service provider determinations. Subsection 99(3) of the Act provides that the ACMA must not make a service provider determination unless the determination relates to a matter specified in the regulations or in section 346 of the Act (which relates to disaster plans). The relevant enabling regulations are the Telecommunications Regulations 2021 (the Telecommunications Regulations).
The ACMA is satisfied that the instrument relates to matters specified in subsection 8(1) of the Telecommunications Regulations, which includes identity verification requirements for prepaid mobile carriage services. This satisfies the statutory precondition in subsection 99(3) of the Act.
Subsection 33(3) of the AIA provides that where an Act confers a power to make a legislative instrument, the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Purpose and operation of the instrument
The purpose of the instrument is to amend the Telecommunications (Service Provider — Identity Checks for Prepaid Mobile Carriage Services) Determination 2017 (the Prepaid Determination) to allow carriage service providers (CSPs) to meet their obligations to verify the identity of service activators by using government-accredited Digital ID services.
The instrument:
- inserts definitions for new terms used in the Prepaid Determination, including accredited entity, accredited identity exchange provider, Digital ID, Digital ID service and Digital ID system identity service, most of which are terms from the Digital ID Act 2024 (the Digital ID Act).
- enables CSPs to use an accredited Digital ID service as an alternative method for identity verification, provided a service activator consents and the verification process complies with the Digital ID Act.
- requires CSPs to record the method of identity verification as “Government-accredited Digital ID service” when this option is used.
These changes aim to modernise identity verification processes, improve security, and support the implementation of the Digital ID framework while maintaining compliance with existing telecommunications obligations.
The amendments provide CSPs with greater flexibility in verifying identities, reduce reliance on physical documentation, and enhance privacy protections through secure digital verification. The amendments also support interoperability between telecommunications and the national Digital ID system.
A provision-by-provision description of the instrument is set out in the notes at Attachment A.
The instrument is a legislative instrument for the purposes of the Legislation Act 2003 (the LA) and is disallowable. It will be registered on the Federal Register of Legislation. The Prepaid Determination is subject to the sunsetting provisions of the LA.
Documents incorporated by reference
The instrument amends the Prepaid Determination to incorporate the Digital ID Act. The Digital ID Act is available free of charge on the Federal Register of Legislation (http://www.legislation.gov.au).
The Digital ID Act is incorporated as in force from time to time, in accordance with section 10 of the AIA, subsection 13(1) of the LA and section 589 of the Act.
Consultation
Before the instrument was made, the ACMA was satisfied that consultation was undertaken to the extent appropriate and reasonably practicable, in accordance with section 17 of the LA.
Consistently with the subsection 99(4) of the Act, the ACMA consulted with the Australian Competition and Consumer Commission (ACCC). The ACCC did not have any comments on the proposed amendments to the Prepaid Determination.
On 23 September 2025, the ACMA undertook public consultation on the proposed amendments in accordance with section 17 of the LA.
The ACMA also alerted key stakeholders to promote broad awareness and engagement. Stakeholders, including CSPs, industry associations, consumer groups, and government agencies, were invited to provide feedback on a draft of the instrument. Submissions were sought on the practicality of implementing Digital ID verification, privacy implications, and potential impacts on consumers and industry.
Feedback received during consultation demonstrated support for the amendment to the Prepaid Determination and informed the final drafting of the instrument, including clarifications on definitions and the scope of [the role of] accredited entities. The ACMA considers that the consultation process ensured transparency and allowed for meaningful stakeholder engagement.
Statement of compatibility with human rights
Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires the rule-maker in relation to a legislative instrument to which section 42 (disallowance) of the LA applies to cause a statement of compatibility with human rights to be prepared in respect of that legislative instrument.
The statement of compatibility with human rights set out in Attachment B has been prepared to meet that requirement.
Attachment A
Notes to the Telecommunications (Service Provider – Identity Checks for Prepaid Mobile Carriage Services) Amendment Determination 2025 (No. 1)
Section 1 Name
This section provides for the instrument to be cited as the Telecommunications (Service Provider – Identity Checks for Prepaid Mobile Carriage Services) Amendment Determination 2025 (No. 1).
Section 2 Commencement
This section provides for the instrument to commence at the start of the day after the day it is registered on the Federal Register of Legislation.
The Federal Register of Legislation may be accessed free of charge at www.legislation.gov.au.
Section 3 Authority
This section identifies the provision of the Act that authorises the making of the instrument, namely, subsection 99(1) of the Act.
Section 4 Amendments
This section provides that the legislative instrument specified in Schedule 1, being the Prepaid Determination (F2017L00399), is amended as described by the appliable items in that Schedule.
Schedule 1–Amendments
Item 1
This item inserts new definitions into section 1.5 of the Prepaid Determination. The instrument incorporates the meaning of several terms and phrases from section 9 of the Digital ID Act. These include ‘accredited entity’, ‘accredited identity exchange provider’, ‘accredited service’, ‘Digital ID’ and ‘identity service provider’.
The term ‘Digital ID service’ is defined as an accredited service provided by an accredited entity.
The adoption of the definitions in the Digital ID Act is intended to ensure consistency, and to support interoperability, between telecommunications and digital identity frameworks.
Item 2
This item inserts item 9 into Schedule 1 to the Prepaid Determination, introducing “Government-accredited Digital ID service” as an approved method for verifying the identity of a service activator.
The new method will enable a CSP to verify the identity of a service activator by using a Digital ID service. If a CSP wishes to verify the identity of a service activator under item 9:
- the CSP must obtain the consent of a service activator to have their identity checked by either an accredited entity or an identity service provider that has an arrangement with an accredited entity to verify a person’s identity. For example, a service activator may consent to allow a non-accredited identity service provider (such as a bank) to facilitate the verification, if that entity operates within an identity exchange and can facilitate the verification of a service activator’s identity through an accredited identity exchange provider;
- the CSP must supply the information about the service activator, to enable digital verification of the service activator; and
- the verification process must comply with the Digital ID Act.
If a CSP verifies a service activator’s identity using this method, the CSP must record the method of identity verification as “Government-accredited Digital ID service” in their compliance records.
This amendment modernises identity verification by allowing CSPs to use secure, government-accredited digital identity solutions. It reduces reliance on physical documents, enhances privacy protections, and supports the national Digital ID framework.
The requirement for explicit consent and compliance with the Digital ID Act ensures that privacy and data security obligations are maintained.
The Statement of Compatibility with Human Rights at Attachment B contains more information about the protection of personal information in relation to the Prepaid Determination and the instrument.
Attachment B
Statement of compatibility with human rights
Prepared by the Australian Communications and Media Authority under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011
Telecommunications (Service Provider — Identity Checks for Prepaid Mobile Carriage Services) Amendment Determination 2025 (No. 1)
Overview of the instrument
The Telecommunications (Service Provider — Identity Checks for Prepaid Mobile Carriage Services) Determination 2017 (the Prepaid Determination) sets out the regulatory arrangements for the supply of prepaid mobile services. Under the Prepaid Determination, carriage service providers (CSPs) are required to obtain information from customers and verify a customer’s identity before activating a prepaid mobile service. CSPs can use prescribed identity verification methods specified in the Prepaid Determination or an alternative method specified in a compliance plan that has been approved by the ACMA.
The objects of the Prepaid Determination include:
- to assist law enforcement agencies to identify customers in relation to prepaid mobile services;
- to protect the privacy of individuals by ensuring that CSPs obtain, record and keep only the minimum amount of information that is reasonably necessary; and
- to provide CSPs with a range of methods which can be used to verify the identity of customers.
The Prepaid Determination does not currently recognise Digital ID verification methods enabled under the Digital ID Act 2024 (the Digital ID Act) as an identity verification option. However, CSPs may use this as a method of identity verification if they have an ACMA-approved compliance plan under Part 5 of the Prepaid Determination which allows for this method.
The Telecommunications (Service Provider — Identity Checks for Prepaid Mobile Carriage Services) Amendment Determination 2025 (No. 1) (the instrument) amends the Prepaid Determination to enable CSPs to use verification methods enabled under the Digital ID Act (these are referred to in the instrument as a ‘Government-accredited Digital ID service’). This new method will ensure alignment with the Digital ID Act and support early uptake of trusted digital identity solutions in line with government policy.
The Prepaid Determination is scheduled to sunset on 1 October 2027, and a broader review of the Prepaid Determination is likely to commence in the 2026–27 financial year.
Human rights implications
The ACMA has assessed whether the instrument is compatible with human rights, being the rights and freedoms recognised or declared by the international instruments listed in subsection 3(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 as they apply to Australia.
Having considered the likely impact of the instrument and the nature of the applicable rights and freedoms, the ACMA has formed the view that the instrument engages the following rights/freedoms:
- the right to protection from arbitrary or unlawful interference with privacy contained in Article 17 of the International Covenant on Civil and Political Rights (ICCPR), and also referred to in Article 16 of the Convention on the Rights of the Child (CROC) and Article 22 of the Convention on the Rights of Persons with Disabilities (CRPD);
- the right to equality and non-discrimination under Articles 26 of the ICCPR and Article 2 of the CROC;
- the right to freedom of expression in Article 19(2) of the ICCPR.
The right to privacy
Article 17 of the ICCPR prohibits arbitrary or unlawful interference with privacy. It states that:
No one shall be subjected to arbitrary or unlawful interference with his privacy, family, home or correspondence, nor to unlawful attacks on his honour and reputation.
Everyone has the right to the protection of the law against such interference or attacks.
Article 16 of the CROC and Article 22 of the CRPD contain similar rights.
While the Prepaid Determination authorises the collection and use of personal information, it also imposes restrictions on the collection, recording, keeping and reproduction of personal information in the identity-checking process.
The instrument extends the methods by which a CSP can verify the identity of its customers to include verification in accordance with the Digital ID Act. The Digital ID Act requires that accredited entities comply with existing privacy protections in the Privacy Act 1988 (the Privacy Act) or, for State or Territory entities, the relevant local privacy law. Where a State or Territory entity is not subject to a local privacy law, and wishes to become an accredited service provider, the Digital ID Act prescribes that the entity must enter into a binding agreement that would require them to comply with the Australian Privacy Principles.
There are also strict requirements for entities to become accredited and maintain their accreditation. In particular, the Digital ID (Accreditation) Rules 2024 (the Digital ID Rules) set out requirements that encourage the responsible handling of personal information to protect privacy. The Digital ID Rules also limits the collection and disclosure of personal information from an accredited entity’s accredited services to reduce the unnecessary sharing of personal information for the purpose of verifying an individual’s identity.
In addition, any personal information collected by an accredited entity to provide its accredited services must be managed in accordance with the privacy requirements and safeguards in the Digital ID Act. These measures are considered privacy enhancing because they help ensure that only the necessary minimum amount of personal information is collected to provide accredited services and disclosed to parties relying on those services.
As required by the Digital ID Act, the instrument also requires CSPs to obtain the consent of an individual for their identity to be verified
In addition to those safeguards provided by the Digital ID Act, Part 13 of the Telecommunications Act 1997 (the Act) is directed at protecting the confidentiality of (among other things) personal information held by CSPs. The disclosure or use of such information is prohibited except in limited circumstances, such as for purposes relating to the enforcement of the criminal law, assisting the ACMA to carry out its functions or powers, or providing emergency warnings. Part 13 of the Act also imposes a range of record-keeping requirements on CSPs in relation to authorised disclosures or uses of information. The Information Commissioner has the function of monitoring compliance with, and reporting to the Minister, in relation to these record-keeping requirements, and on whether the records indicate compliance with limitations imposed on disclosure and use of personal information held by CSPs.
Most CSPs are also subject to the Privacy Act in relation to the personal information they handle in accordance with the Prepaid Determination. The Prepaid Determination therefore enhances the privacy protections afforded to individuals in the following ways:
- customers of prepaid mobile services are provided with a range of choices about how their identity can be verified; and
- restrictions on the collection, recording and copying of personal information in the identity-checking process are imposed.
These safeguards, together with the other restrictions on the handling of personal information described above under the Digital ID Act and the Digital ID Rules, indicate that the effects of the instrument and the Prepaid Determination on the right to privacy are reasonable, necessary and proportionate.
Right to equality and non-discrimination
Article 26 of the ICCPR states:
All persons are equal before the law and are entitled without any discrimination to the equal protection of the law. In this respect, the law shall prohibit any discrimination and guarantee to all persons equal and effective protection against discrimination on any ground such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status.
Article 2 of the CROC contains a similar right.
As set out above, the instrument introduces a new method of identity verification in line with the Digital ID Act. The Digital ID Act and the Digital ID Rules promote the right to equality and non-discrimination by prescribing requirements relating to accessibility and useability. For example, under the Digital ID Rules, accredited entities are required to conduct useability testing involving a range of individuals covering diversity in disability, age, gender and ethnicity. These requirements help ensure that the technologies used by prescribed entities do not pose unintentional barriers to accessibility of digital services for vulnerable groups of people and protect the rights to equality and non-discrimination before the law.
In addition, the option to have a service activator’s identity verified through the Government-accredited Digital ID service is voluntary for individuals. The instrument does not make identity verification in this manner compulsory. Existing verification methods in the Prepaid Determination remain available and CSPs will be encouraged to retain these alternative methods to ensure that individuals who cannot access a Government-accredited Digital ID service (who may include First Nations peoples in remote areas or vulnerable consumers) are given alternative options and pathways to activate prepaid mobile services. This approach supports the right to equality and non-discrimination.
Freedom of expression
Article 19(2) of the ICCPR provides:
Everyone shall have the right to freedom of expression; this right shall include freedom to seek, receive and impart information and ideas of all kinds, regardless of frontiers, either orally, in writing or in print, in the form of art, or through any other media of his choice.
The ACMA considers the instrument positively engages the right to freedom of expression, in so far as that right includes the rights of persons to seek, receive and impart information.
The primary purpose of the instrument is to introduce an additional method of identity verification to persons who wish to obtain a prepaid mobile phone service. By extending the methods of verification, the instrument is expected to enhance the freedom of expression for people by expanding the range of ways in which a person can verify their identity to enable those individuals to acquire prepaid mobile services.
Conclusion
The instrument is compatible with human rights because it extends identity verification methods in a privacy enhancing manner. The instrument also promotes equitable access to essential services and enhances a person’s freedom of expression by extending the means by which a person can verify their identity. To the extent the instrument may limit human rights (for example, the right to privacy), those limitations are reasonable, necessary and proportionate.