Whatever the capabilities of the Australian government ID services, there is a way to issue privacy-preserving tokens that could do all the things you'd need without being trackable the system was properly designed. (I have not studied the protocols of the Digital ID spec to say whether that's the case).
I agree with you that technically it can be done. Which is why I said:
"I don't want the government's aim for auditable provability"
I mean, technically they could do it and provide at least a modicum of privacy protection. But I will bet they won't because whoever is implementing it will want to be able to point to specifics - specific people, specific times, specific places - so they can cover their arse come the next moral panic moment.
Whatever the capabilities of the Australian government ID services, there is a way to issue privacy-preserving tokens that could do all the things you'd need without being trackable the system was properly designed. (I have not studied the protocols of the Digital ID spec to say whether that's the case).