People will be able to choose how much personal information they share with businesses or services under a form of digital-ID verification.
Government Services Minister Bill Shorten will tell the National Press Club on Tuesday a "world leading" project called Trust Exchange, or TEx, would help give Australians control of their data.
TEx would eliminate the need for people to hand over multiple forms of sensitive ID by allowing Australians to verify their identity on information held by the government.
The verification system, which isn't duplicating digital ID, could be done through the myGov digital wallet on a mobile phone.
Mr Shorten will say the process could be used in areas such as applying jobs or renting accommodation.
"Whatever the case, online or in person, you choose what is shared, you consent to it being shared and you can trust it is safe," he will say.
"All that has been exchanged has been a digital 'thumbs up' from the government that you are who you say you are."
People would consent via their digital wallet to share specific types of information.
Mr Shorten will say he hopes TEx will rival the "gold standard" European regulator for data protection, but without the complexity.
