"We don't want it to become a national ID card and Australians are against that," Prof Fels said. "I detect a degree of concern that this new card might somehow evolve into a national identity card by the backdoor, a sort of Australia Card Mark II."

Releasing the first discussion paper on the new access card consumer and privacy taskforce yesterday, Prof Fels' group also conceded the Government's claims about "voluntary" taking up of the card did not stack up.

"The taskforce recognises that, at some stage, almost every Australian is likely to need an access card," the report says.

Prof Fels said he wanted laws to prevent unauthorised people and organisations from forcing Australians to produce the card on demand.

"It will not be linked to a driver's licence, so police won't be able to force people to produce it," Prof Fels said.

"To prevent it becoming a de facto ID card, there should be a prohibition on anyone compelling people to produce it."

Labor's spokesman on the card, Kelvin Thomson, said Prof Fels had uncovered some serious deficiencies with the $1 billion project.

He questioned whether forcing people to produce their card would be prohibited. "The question is, will the Government now introduce such a law?"

Prof Fels says there were many issues that had to be dealt with before people would feel comfortable about the card.

The $1 billion access card will be rolled out in 2008, replacing 17 existing health and welfare cards.

The Howard Government says the card is not compulsory, but after 2010 people without it will not be able to receive government hospital treatment, Centrelink benefits or claim for Medicare.