The federal government has announced plans to link individual databases in different departments together to create an uber-database containing personal information that will be available to official agencies.

The Minister for Justice and Customs, Senator Chris Ellison, announced today that the Commonwealth Government had developed a whole-of-government strategy to "enhance the identification and verification processes for government agencies and to identify other measures to combat identity fraud".

"One of the aims of the study will be to test the feasibility of an on-line identity verification service to be available to Commonwealth, State and Territory agencies," said Ellison. "An on-line verification service for primary identity documents would be a key component of improved personal identification processes and would allow authorised users to confirm that a current record exists in relation to birth and death registration records, and people movement records."

The uber-database is promoted as a means of fighting fraud on government programs, fraud on electronic commerce and -- the perennial favourites of the Government -- terrorism, people smuggling and illegal immigration. Financial crime is estimated to cost AU$4 billion per year.

Ellison has sought to head-off any objections to the proposal based on privacy concerns. "The proposals will be developed in consultation with the Federal Privacy Commissioner to ensure individual privacy and civil liberties are balanced against broader community interests," he said.

Some media reports have claimed the database will be available to banks and other financial institutions.

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