It doesn’t say that?
“Social media companies also won't be able to force users to provide government identification, including the Digital ID, to assess their age.”
“Social media companies also won't be able to force users to provide government identification, including the Digital ID, to assess their age.”
And honestly with the government's track record when it comes to privacy and technology, I don't think they deserve the benefit of the doubt.
(a) the provider provides alternative means (not involving the material and services mentioned in paragraphs (1)(a) and (b)) for an individual to assure the provider that the individual is not an age-restricted user; and (b) those means are reasonable in the circumstances.
https://parlinfo.aph.gov.au/parlInfo/download/legislation/bi... - page 8
So it doesn't actually provide an alternative, just says the nerds need to magic one up.