This cost, the ACCI said, would be largely borne by the business sector, over and above the estimated A$750 per person it would cost to introduce the system.

While experts admit the introduction of such a card will do little to stop terrorism, the federal government is moving ahead with an identity card inquiry.

Smartcards, as they are generally known, are currently in use in Hong Kong and plans for a national ID card in the UK has led to widespread debate.

Microsoft's national technology officer in the UK, Jerry Fishenden, said a centralized national ID card could lead to "huge potential breaches" and leaks of personal information.

Fishenden, in an interview with Silicon.com, said he is worried about both the current architecture and the biometrics used.