SmartCard done the dumb way
If they only wanted it for the stated aims this the way to do it with no major bodies objecting is this. Firstly, what they should have claimed was that you need a Medicare Card to get any welfare payment. Easy, as the only people whp would object are those cheating the welfare system. Then they should have sometime later introduced the need for a photograph on the medicare card. It would take all of two years and there would not be much of a barney.
Instead they are picking a fight with the civil liberations basically because they think they are onto a winner with hinting that it could assist with national security and police actions with certain sections of the community, yet covering themselves against other sections* by using the welfare fraud issues as the main issue.
* The section that is easily misled.