The Role of Trust and Data Security in Driving Adoption of Life-Event Digital Services

Digital government services have become an essential part of everyday life for millions of Australians, streamlining access to healthcare, financial support, and critical documentation—especially during major life events such as births, marriages, job changes, and bereavement. Yet, as digital transformation accelerates, concerns around data privacy, security, and trust have emerged as pivotal factors influencing whether citizens choose to engage with these services. Understanding and addressing these concerns is now central to the success of government digital strategies, particularly for life-event moments that are often complex and deeply personal.

Recent years have seen a sharp rise in public anxiety over data privacy and security. High-profile data breaches and growing awareness of the risks associated with digital transactions have led to a significant decline in trust in government’s ability to protect personal information. According to the latest research, over half of Australians (52%) have lost trust in the government’s data security, with this figure rising to 59% among citizens under 45. Those in precarious financial situations are even less likely to trust the government with their data, compounding their vulnerability and risk of exclusion.

This trust deficit has a direct impact on digital service adoption. When citizens worry about how their data is handled, their enthusiasm for using digital services—especially for sensitive life events—diminishes. The result is a growing digital divide, where those who could benefit most from efficient, accessible support are often the least likely to engage.

The trust barrier is not uniform across the population. Younger Australians, lower-income households, the unemployed, and those without university education are all less likely to trust digital government services and more likely to report negative experiences or barriers to access. For example:

• Younger citizens: 59% of under-45s have lost trust in government data security, and are more likely to express concerns about privacy and the ethical use of emerging technologies like AI.
• Lower-income households: One-third of households earning less than $100,000 struggle to find, use, or understand online government services, compared to just 23% of higher earners. Financial stress not only increases the need for government support but also makes it harder to access digital services.
• Older Australians: The oldest age groups are five times more likely to rate digital services as “very poor,” often due to lack of digital skills, accessibility issues, or a preference for face-to-face interactions.
• Minority and Indigenous groups: These communities are less likely to use key digital services and more likely to rate their experiences as poor, highlighting the need for culturally appropriate and inclusive service design.

Data privacy and security are now top-of-mind for citizens. The most common concerns include:

• Privacy breaches from storing data in a single source
• The risk of being unable to access personal data
• Worries about personal data being stored on government databases

These anxieties are not unfounded. Recent data breaches have heightened public scrutiny, and citizens are increasingly demanding transparency, robust data governance, and clear communication about how their information is used and protected. Without these assurances, adoption of digital services—particularly those involving sensitive life events—will continue to lag.

To close the trust gap and encourage broader uptake of life-event digital services, governments must take a multi-faceted, citizen-centric approach:

1. Transparent Communication

2. Robust Data Governance

3. Ethical Use of AI and Emerging Technologies

4. Citizen Engagement in Service Design

5. Expanding Digital Inclusion Initiatives

6. Omnichannel Support

Australia’s digital government journey is at a crossroads. The opportunity to deliver more accessible, efficient, and personalized services is immense—but only if trust is restored and data security is prioritized. By embracing transparency, robust governance, ethical innovation, and genuine citizen engagement, governments can rebuild public confidence and unlock the full potential of life-event digital services.

At Publicis Sapient, we believe that digital transformation must be inclusive and trustworthy by design. The future of digital government will be defined not just by technology, but by the strength of the relationship between citizens and the state—grounded in trust, empathy, and a shared commitment to serving every member of society.

Relevant Links

• Government life-event services are a clear success story, but not everyone is taking advantage
• Government life-event services are a clear success story, but not everyone is taking advantage
• Les services numériques centrés sur les événements de vie : une opportunité pour l’Europe (Europe)
• Servicios Digitales Gubernamentales Centrado en Eventos de Vida: Un Camino para la Inclusión en América Latina (LATAM)
• Bridging the Digital Divide: Ensuring Equitable Access to Life-Event Digital Services in Regional and Vulnerable Communities