Territorians will have the option of a digital driver licence by the end of this year, the NT Government has said, billing it as a “secure and convenient way” to carry and display licences on smartphones, but previously raised security concerns by cybersecurity experts about the potential for hacking personal information and surveillance remain.

The digital licence will be optional and will provide “real-time updates and enhanced safeguards” against fraud and misuse, the government said, with no additional cost to residents. The digital licence will work without mobile coverage, allowing Territorians to access their licence in regional and remote areas.

Minister for Logistics and Infrastructure Bill Yan said the NT Government was drawing on the experience of South Australia to roll out the new digital licences, ensuring security.

“[We’re] making sure that when the digital driver’s license rolls out, the security protocols are there, so that it can’t be hacked or duplicated,” he told ABC Radio Darwin.

“In South Australia, for instance, they have a … feature where you shake your phone and it immediately puts up a date over the top of your digital driver’s license ID, which makes it pretty well impossible to hack because whoever’s looking at your license asks you to shake your phone, and it’s nearly impossible for someone to duplicate that and have that piece of your phone show up…whether it’s a date or something else across the top of your ID.”

Mr Yan said the Department of Corporate and Digital Development is developing the security app to protect Territorians’ digital licences. That department is best known now for its botched development of the Acacia health IT system which cost taxpayers $335 million and did not work the way it was intended, amid myriad other problems with the system.

“There’s a secure app that’s being developed now, also by DCDD,” Mr Yan said.

“So it’s not just a matter of, you don’t just get a picture of your license and stick it on your phone, there’s a secure app if you want to take part. Through that secure app, that’s where your digital driver’s license would show up on your phone. So I suppose it’s a two-stage process in that way.”

Mr Yan said he was not aware of what the project is costing to develop. The rollout of the program in WA, which is not set for release until next year, is costing $28 million, while SA reportedly spent only $1.3 million on its digital driver licence system.

He said developing the app in the NT and the logistics involved was “quite a complex process”.

“We’ve got to do it right, and I go back to those lessons learnt from other states. Now, other states have implemented, haven’t had the international security functions that we’re going to have,” he said.

“They’ve had problems with licenses being duplicated or fakes created. So it is a complex piece of work on that digital side to make sure that we get that good, robust system that said that can’t be hacked.”

Mr Yan was not asked about the potential for the digital licence to be used for surveillance.

“This is a practical reform that cuts red tape and makes an everyday government service easier to use, while ensuring Territorians remain in control of how they access and share their information,” Mr Yan said.

“And when renewing your licence or updating your details, digital licence information can be updated without needing to wait for a new card in the post.”

The digital driver’s licence will serve as proof of a person’s right to drive, validate they are over 18, and confirm their identity in certain circumstances.

Some businesses, particularly places like bottle shops that need to scan licences for alcohol purchases, may need some time to adapt to the digital licence verification process, Mr Yan said.

NT residents are advised to keep their physical card with them when travelling interstate or internationally, as efforts are underway to enhance national cross-border recognition.

Minister for Corporate and Digital Development Josh Burgoyne said in a statement the digital licence will provide greater convenience while ensuring robust protection of personal information.

More information on the NT Government’s digital licence program is available at https://service.nt.gov.au/digital-driver-licence