Financially vulnerable citizens less likely to use digital council services

Australia’s most financially vulnerable residents are the least likely to engage with online local government services despite substantial investment and widespread access to digital platforms, a new national report has found.

Local software-as-a-service (SaaS) provider TechnologyOne commissioned the Australian Digital Citizens 2025 report from independent economics consultant IBRS. The company said it is the largest evaluation of citizens’ thoughts on government services with responses from more than 2500 participants across Australia.

The report reveals over half (56%) of residents with ‘precarious’ financial status — defined as having bills they may not be able to pay on time — do not use any digital services provided by their local council. Across Australia, this equates to around 1.4 million of the most vulnerable citizens missing out on vital support. In stark contrast, seven in 10 (69%) financially ‘comfortable’ citizens engage with online services.

The report also highlights a correlation between perceptions of councils’ service improvements and socioeconomic status. While most residents from financially comfortable backgrounds state online services are improving (51%), those from disadvantaged backgrounds overwhelmingly believe they have stayed the same over the last four years (70%).

Additionally, those with precarious financial status are 25% more likely to report experiencing no benefits from using online services, suggesting digital enhancements are failing to reach those most in need.

Across the socioeconomic spectrum, respondents identified similar reoccurring pain points with online local government services, including hard-to-find information (35%), complex language (28%), lack of timely human support (28%), time-consuming processes (23%) and limited visibility on service progress (19%). These frustrations are driving increased reliance on traditional customer service channels like call centres, placing additional pressure on councils.

Respondents' satisfaction with local government services was highest in relation to simple request-and-respond services, such as booking a hard waste collection or ordering a recycling bin. More complex or personal actions, such as getting approval for building or development, were rated amongst the worst satisfaction scores.

“Despite substantial investments to close the digital divide, our data confirms that the most vulnerable citizens continue to face significant barriers when utilising digital government services,” said Dr Joseph Sweeney, IBRS Senior Advisor. “But these barriers are not technological: they are empathic. The good news is that the government can realise the efficiency and cost-saving benefits of new technology by enriching existing services with delivery design principles that educate and guide citizens.”

“The pieces of the technology puzzle are all there, but we need to put them together in such a way that we don’t lose the human element and empathy for users,” said Ben Malpass, EVP for Local Government at TechnologyOne. “The real opportunity now is to improve service design in ways that meet people where they are. When councils apply citizen-centric service design, they not only improve accessibility for the community but also reduce pressure on call centres and walk-in offices.”

The Australian Digital Citizens 2025 report can be found here.

Image credit: iStock.com/jacoblund