The bipartisan Parliamentary Joint Committee on Intelligence and Security has rejected both an identity-matching bill and a passports amendment bill in their current form.

It's beginning to look like the tech industry has finally cottoned on to the fact that the Federal Government's repeated reviews of the encryption laws that were rushed through Parliament last year are just an eyewash.

The Federal Government's encryption law in its current form will have a negative impact on the country's ICT industry and block practitioners from innovating and exporting the products of their innovation, the Australian Information Industry Association claims.