Victoria is pledging to collaborate closely with the federal government to develop a digital identity system like myGov, but state government services minister Danny Pearson says there are practical limits to having a single federal-state system.

“The way I see this is if we walked into a bank together, and you had your passport, and your Medicare card, and I had my Victorian driver’s licence and a water bill, we could open up a bank account using our relevant government issued credential documents, be they Commonwealth issued or state issued,” Mr Pearson told The Australian Financial Review.