This paper explores how an identity card scheme might work in Australia by using the UK Identity Card Scheme as a model. It explores the proposal for a national UK identity card scheme and assesses how it would reduce identity theft and fraud, improve national security, and maintain adequate privacy protection. The paper discusses the legal and social difficulties associated with the introduction of such a national identity card scheme and the issues which arise when a government seeks to broaden the scope of the scheme from identity fraud and security issues to include the efficient and effective delivery of public services. It suggests alternative approaches to ensuring identity management which are consistent with privacy and data protection restraints. This paper should contribute to the development of Federal Government policy in the area of a regulatory and legal framework for identity management.