New South Wales driver's licence holders will have their facial images added to a national database under sweeping legislation introduced to the state parliament on Thursday, as the government moves to give police a broad new set of tools to combat identity theft and organised crime.

The proposed laws would see Transport for NSW share driver's licence and photo card images with the Commonwealth-operated National Driver Licence Facial Recognition Solution, placing NSW alongside Western Australia and South Australia, which are already connected to the system.

Tackling the $2.2 Billion Identity Theft Problem

The state government says the facial recognition database will serve as a frontline defence against identity fraud, particularly in cases where stolen documents are used to open bank accounts or access financial services. The technology would allow institutions to verify that the person presenting identification documents is the legitimate owner — flagging discrepancies before fraud can occur.

The scale of the problem is significant. About one in four Australians are affected by identity theft each year, costing Australian businesses an estimated $2.2 billion annually, according to the state government.

"Face Matching Services provide a critical tool to combat identity theft," the government stated in materials accompanying the legislation.

In the event of a data breach, the ability to perform facial verification provides an additional layer of protection for individuals whose documents may have been compromised.

New Police Powers to Target Organised Crime

The legislation goes well beyond facial recognition, introducing a suite of new powers aimed squarely at dismantling organised crime networks. Central among them is a new Digital Evidence Access Order, which would compel individuals suspected of involvement in organised crime to hand over access information for their digital devices.

Under current law, police can only order a device to be unlocked if it has been seized pursuant to a search or crime scene warrant. The proposed order removes that limitation, allowing investigators to demand access to phones and other devices during fast-moving inquiries. Refusing to comply could carry a prison sentence of up to seven years.

Premier Chris Minns said the measure was designed to stop criminals from using technology as a shield. "Often, the people directing serious offences are nowhere near the crime scene," he said. "They're recruiting others to steal cars, source weapons or carry out shootings while they hide in the background. We are making it harder for those criminals to operate."

The bill also expands the categories of offences that can be linked to organised crime, adding drug supply, the illicit tobacco trade, fire-bombings and public place shootings to the existing list.

Toll Camera Access and Crime Commission Changes

Police investigating serious offences or responding to missing persons cases would also be granted access to unredacted images captured by toll cameras on public roads under the proposed laws. The government has stressed the changes are "targeted and will not affect law-abiding motorists."

Another significant element of the package doubles the maximum jail term for those who fail to cooperate with the NSW Crime Commission. This covers a range of conduct including refusing to answer questions, providing false or misleading evidence, and obstructing investigations.

Taken together, the measures represent one of the more expansive law enforcement reform packages introduced in the state in recent years, with the government framing them as a necessary response to criminals who are increasingly exploiting encrypted communications, the dark web, and networks of intermediaries to insulate themselves from direct criminal exposure.

For the latest on crime news across Australia, including ongoing coverage of organised crime and law enforcement developments, follow our reporting as the legislation moves through parliament.