Australian government wants ID on everything digital

This is incorrect. In fact, the OAIC recommends that providers do the opposite:

The OAIC encourages entities to adopt a ‘privacy by design’ approach when selecting an assurance method. A Privacy Impact Assessment (PIA) is a systematic assessment that identifies the privacy impact on individuals, and sets out recommendations for managing, minimising or eliminating that impact. A PIA demonstrates commitment to, and respect of, individual’s privacy.

Plus, there are a bunch of extra rules if you do have ID on your users. I don't know how you got that impression, but it is mistaken.