The innovation imperative: why councils must adapt

The research reveals a strong correlation between citizens' financial status and their ability to engage with council digital services. Only 44.6% of those in precarious financial situations use local government digital services, compared to 69.3% of financially comfortable citizens.

Critically, while many councils have invested in digital upgrades, 65% of citizens say local government services have remained unchanged in the past four years. Those most in need—lower socioeconomic groups—see little benefit or improvement.

Previous research commissioned by TechnologyOne in 2024 found that financial pressures and shifting community expectations are two of the most pressing challenges facing local government leaders today. In particular, there’s increasing demand for personalised services, greater transparency, and modern digital interactions.

The research revealed that around 50% of citizens surveyed actively used online government and local government services. Of those users, the most desired improvement was to ‘make information easier to find’ (30%) and ‘make it clearer how to do things or get service’ (28%).

“We’re seeing a real change in how residents want to engage with councils,” said Ben Malpass, Executive Vice President for Local Government at TechnologyOne.

“They expect the same digital-first, on-demand experiences they get everywhere else. Councils can’t afford to rely on outdated systems or processes—they need connected, real-time solutions that help them stay responsive and innovative.”

Technology’s role in closing the gap

Legacy systems and siloed departments make it increasingly difficult for councils to meet rising community expectations. Outdated platforms and manual workarounds slow service delivery, increase operational costs and leave many citizens frustrated by complex or inaccessible processes. As demand for personalised, digital-first services grows, this gap only widens.

Interesting, citizens frequently reported ‘poor’ or ‘terrible’ experiences with more complex personal issues, such as getting approval for a development (13.9%); applications for housing (14.8%), and reporting defects to the council (17.4%).

Other top pain points from the research included:

• 35% of citizens say local council websites need clearer instructions
• 31.9% want information easier to find
• 29% want better access to live human support

It’s obvious that technology is vital to closing this gap, but how exactly is it meant to do that?

Three practical ways councils can enhance community services

The report strongly recommends adopting an empathic citizen-centric service design—an approach that prioritises the needs of disadvantaged citizens while improving services for everyone. By focusing on clarity, accessibility, and empathy, councils can make significant improvements without large new investments.

Simplify navigation and digital experiences

Many citizens report difficulty finding information or completing simple tasks online due to confusing layouts and overly complex instructions. Councils can address this by:

• Using plain, jargon-free language and adding visual aids like icons or video guides
• Streamlining website interfaces for intuitive navigation, particularly on mobile devices
• Providing step-by-step process overviews that clearly explain what to expect at each stage

Improving navigation benefits all users but is especially impactful for citizens with lower digital literacy or non-English speakers.

Ensure accessibility and mobile-first services

With smartphones now the primary device for most citizens, local government services must be mobile-friendly and accessible anywhere, anytime. Councils should:

• Expand digital literacy programs and promote public access points like libraries
• Prioritise responsive, mobile-first design to support users who rely solely on phones
• Enhance multilingual support to cater to diverse community needs

These improvements ensure that services are usable by all citizens, not just those with strong digital skills or access to computers.

Humanise digital experiences with empathy

While digital tools improve efficiency, many citizens still value human support—especially for complex or high-stakes interactions. Research shows that failing to offer this support increases frustration and disengagement.

Councils can:

• Free up staff to handle complex cases with empathy, while digital tools handle routine tasks
• Integrate digital adoption platforms to guide users through online services
• Provide real-time status updates and easily accessible human backup when needed

Empathy-driven service design is critical to rebuilding trust and ensuring no citizen is left behind in the shift to digital.

Real-world examples of councils leading the way

Several councils have already shown how technology can be used to deliver better services in innovative ways with TechnologyOne:

• Shoalhaven City Council leveraged AI and real-time asset data to improve road maintenance planning and community safety.
• Noosa Council also employed AI-powered solutions to detect road defects faster with the help of community input, improving public safety and optimising resources.
• Maitland City Council has invested in community-centric services, using digital tools to streamline internal operations and enhance resident engagement.
• Western Downs Regional Council rolled out new software to better manage community assets and anticipate community needs.

These examples demonstrate that digital transformation is not just about efficiency—it’s about delivering smarter, more responsive services that genuinely meet community needs.

Read more local government customer stories here.