Australia Post will work with the government's Digital Transformation Agency to integrate its own identity technology into the government's digital identity framework.
The two bodies will focus on developing a proof of concept to help government agencies improve how they provide access to services both online and over the counter, Australia Post said.
Many interactions with the Australian government and private sector organisations require people to produce at least two or more forms of ID to prove who they are, Australia Post Ahmed Fahour said.
"Our new Digital iD platform provides Australians with greater choice and control in how they prove their identity online," he said.
Fintech legal expert Luke Scanlon at Pinsent Masons, the law firm behind Out-Law.com, said: "Choosing to move forward at this time gives Australia Post and the Australian federal government the ability to benefit from experiences that have taken place elsewhere in relation to public services identity platforms."
"What these experiences indicate is that it is essential that what is built adheres to international identity verification and authentication standards," he said.
"When we look to the future of ID systems, in the long term, ultimately customers worldwide will want interoperable means by which they can access government services relevant to them, financial services across a number of countries where they have interests, and other online services all through the one mechanism. It is important therefore that a system is designed that looks to the future and not simply the short term needs of ensuring access to Australian governmental services alone," said Scanlon.