Australia Post will work with the Digital Transformation Agency to integrate its own identity technology into the Commonwealth's Digital Identity Framework.

The partnership will focus on developing a proof of concept to help government agencies enhance how they provide access to services online and over the counter.

Australia Post Managing Director & Group CEO Ahmed Fahour said the partnership reinforces Australia Post's commitment to helping people connect to important government services such as health and community services.

"Our new Digital iD™ platform provides Australians with greater choice and control in how they prove their identity online," Mr Fahour said.

Mr Fahour said there are millions of interactions with government and private sector organisations each year that are time consuming, requiring people to produce at least two or more forms of ID to prove who they are.

"Our research shows these processes cost the Australian economy up to $11 billion a year in proving identity alone, and can be unlocked by making it easy, safe and secure to prove that you are who you say you are when interacting online," Mr Fahour added.

"We envisage an identity solution, like Digital iD™, could unlock significant benefits for everyday Australians doing business with government."

The Commonwealth's Digital Identity Framework is a set of standards, processes and partnerships to guide the Government's formation of a federated system of identity providers.