I sat for my driver's licence learner's permit written exam, at a police station in metropolitan S.A. during 1974. I gave the police my name and said that I was 16. (No other proof was sought.)
(Actually the Holden Hill police station then didn't have seating, so I stood.)
Years later, I converted my S.A. paper licence to a NSW paper licence also. Some years afterwards, I was able to have a photo licence for both states. Then computers struck and licences were linked between states. (That was an inconvenience as my "still driveable" potential demerit points were reduced from 23 to 11.)
So my NSW Driver's licence remains a primary form of identification along with bank accounts etc. But I've never really been tested as to my real identity.