Renters need to hand over their driver's licence, passport and other ID when they apply for a new home, but a new national trial wants to make this tiresome process easier and safer.
Proving your identity can be a nightmare for renters, who often have to share some of their most sensitive information with property managers and real estate agencies every time they apply for a new home.
But the federal government has launched a new pilot program with accredited digital ID providers, real estate groups and renters to make it easier to prove who you are when applying for rentals.
It comes as the number of Aussie households who are renting hits roughly one in three, according to the Australian Bureau of Statistics.
Renters have faced increasingly difficult times in recent years, with rents rising faster than normal and a shortage of available homes making it harder to lock down a home.
Under the new pilot program, renters will be able to confirm their identity online with the click of a button instead of giving a real estate agent copies of a driver’s licence or passport each time they apply for a home.
Renters will also be able to show they can afford the rent using the Consumer Data Right (CDR), which will securely share verified financial data directly with the agent rather than handing over bank statements or payslips.
One in three Aussie households rent their homes, according to the Australian Bureau of Statistics. Picture: Getty
REA Group senior economist Eleanor Creagh said any move that improved efficiency and trust in the renting process was good news for renters.
"The pilot is a sensible reform that may help cut red tape for renters while strengthening data security and transparency in rental applications,” she said.
"Against the backdrop of low vacancy rates and rapid rental price growth, any measure that improves efficiency and trust in the renting process is good news for renters, however does not substitute for addressing the underlying supply shortage."
Tenants' Union of NSW chief executive Leo Patterson Ross said this was a clear opportunity to reduce risks for data breaches.
Proportion of households renting by age category
Source: Australian Institute of Health and Welfare analysis of Census data/Origin PropTrack Renter Reality Report
"This is an important area, and the amount of private information being handed over has been a concern for many renters for some time," he said.
"Given government holds many of the identification documents digitally and can confirm both identity and capacity to pay, there is a clear opportunity here to reduce risks for data breaches."
But Mr Patterson Ross noted it would be important that the federal pilot and future program lined up with state and territory law, citing a similar bill that recently passed in NSW.
It was also unclear how or whether agents would be required to allow tenants to utilise this system, he said.
Federal finance minister Katy Gallagher said the government was making applications easier and safer for renters trying to get into their new home.
“Applying for a rental shouldn’t take hours and it shouldn’t require mountains of sensitive information like your passport and fortnightly pay slips,” she said.
“This pilot is a no brainer – it will make people’s lives easier, reduce the risk of data theft, and reduce the burden placed on the real estate industry.”
PropTrack senior economist Eleanor Creagh said any move that improved efficiency and trust in the renting process was good news for renters.
That said, the federal government didn’t provide details about where the personal information would be stored and who would have access to it.
Federal, state and territory governments have strengthened some renters’ rights in recent years, with most states banning ‘no grounds’ evictions, limiting rent increases to once per year, and setting minimum rental standards.
Aussie rents were 5% higher nationally during the March 2025 quarter compared to a year ago, reflecting a relative slowdown compared to the peak rental growth years of 2022 and 2023, according to PropTrack.
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