The spokeswoman said the Verizon-designed key, which can be stored locally, on servers, or on portable devices, uses "high-level encryption" and "robust registration and issuing processes" to mitigate data loss and protect against hacking. Encrypted passwords can be reset using an ATO online tool.

The Treasury-led SBR project is a multi-agency, multi-jurisdictional program that involves the ABS, the ATO, the Australian Securities and Investments Commission, the Australian Prudential Regulation Authority, and the offices of state revenue. It is built on a $500,000 extensible business reporting language (XBRL) infrastructure that allows to government to streamline information exchange between external organisations.

The key will remain active if it is used at least once a year.