Lawyers have warned the federal government's proposed identity-matching regime could target jaywalkers and litterbugs while making Australians vulnerable to a Chinese-style surveillance system with few safeguards.

Under a measure agreed by the states and territories last year, facial recognition and identity data will be shared between all levels of government in a bid to thwart identity fraud, organised crime and terrorism activities.

But it has been criticised by the Law Council of Australia, the peak body for lawyers, which fears the so-called "central interoperability hub" could be used to target petty offenders and establish widespread surveillance.

Lawyers are concerned about a new surveillance system. Credit:Louie Douvis

The scheme also faces renewed resistance from Victoria, which along with the Law Council, fears private information could be passed on to private companies, or that people will unwittingly submit to sharing their facial image among law enforcement agencies simply by gaining a driver’s licence.