Good news if it happens
Unfortunately, the next Minister might have just the opposite opinion.
The Government may have realised, however, that at the Federal level it doesn't work too well. You just end up with another layer on top of people who are not specialists and have to refer you on the the tax office, or Medicare or whatever. That isn't really efficient, it just makes the bureaucracy even more opaque than it already is and annoys the voters. You can get away with it when you are dealing with a vulnerable group like the unemployed, but nearly everyone has interactions with Medicare or the tax office, and anyone who has had to visit the new one stop shops will do anything to avoid repeating the experience. If you're wondering what that has to do with a digital identity, you have to actually interact with the system to realise it soon devolves to you communicating one-on-one with an anonymous bureaucrat.