Australia stands at the forefront of digital government transformation, with artificial intelligence (AI) and emerging technologies rapidly reshaping how public services are delivered. These innovations promise more personalised, efficient, and accessible experiences for citizens—streamlining everything from healthcare and financial support to life-event services. Yet, as digital adoption accelerates, a critical challenge has emerged: the digital divide is widening, threatening to leave behind the very groups who could benefit most from these advancements.
Despite high overall satisfaction with digital government services—93% of Australians report positive experiences—significant disparities persist. Vulnerable groups such as low-income households, rural residents, the unemployed, and those with limited digital literacy are less likely to engage with digital and AI-enabled services. For example, a third of households earning less than $100,000 struggle to find, use, or understand online government services, compared to just 23% of higher-income households. The gap is also evident in the uptake of digital identity solutions like myGovID and digital wallets, with a 10% disparity between higher and lower earners.
The digital divide is not just about access to technology. It is shaped by a complex interplay of financial stress, digital skills, infrastructure gaps, and trust. Unemployed Australians, those without university education, and people in precarious financial situations are less likely to use digital services and more likely to report negative experiences. Rural residents face additional barriers, including unreliable network coverage and limited digital infrastructure.
The rising cost of living has had a profound impact on digital adoption. The number of Australians describing their financial situation as precarious has surged, and those under financial stress are less likely to access or benefit from digital government services. Ironically, these are often the citizens who stand to gain the most from efficient, accessible support.
A lack of digital skills remains a major barrier. Australians with lower tech skills, lower levels of education, or limited experience with digital services are less comfortable and less trusting of AI-enabled government offerings. This digital literacy gap is particularly pronounced among older Australians, women, and minority groups.
Poor digital infrastructure, high costs, and unreliable network or mobile coverage—especially in rural and remote areas—further compound the divide. Even as smartphone adoption rises, not all citizens have equal access to the devices or connectivity needed to fully participate in digital government.
Trust is foundational to digital adoption. Recent high-profile data breaches have eroded public confidence: 52% of Australians have lost trust in the government’s ability to protect their data, and 56% express doubts about data safety. These concerns are especially acute among younger citizens and those in financially precarious situations. When trust falters, enthusiasm for digital and AI-enabled services wanes, and adoption rates stall.
AI has the potential to transform public services by making them more personalised, responsive, and accessible. Australians are increasingly open to these innovations—40% have used generative AI in the past year, and 55% support its use in government. Key benefits include reduced wait times, 24/7 support, and tailored recommendations for services such as health screenings or disability support.
However, support for AI is not uniform. It is highest among digitally literate, high-income, and already satisfied users. Among vulnerable groups, a significant portion cannot identify a single benefit of AI in government services, underscoring the need for inclusive design and targeted outreach.
Government services must be designed with accessibility and inclusivity at their core. This means:
Digital literacy is a cornerstone of inclusion. Expanding programs to reach disadvantaged and minority groups—through schools, community centres, and targeted outreach—can empower more Australians to confidently engage with AI-enabled services. Multi-stakeholder initiatives that bring together government, business, and community organisations are essential for scaling these efforts.
Closing the digital divide requires investment in reliable, affordable digital infrastructure, particularly in rural and remote areas. Addressing high costs and improving network coverage will ensure that all citizens can access essential services, regardless of location.
Restoring and maintaining public trust is critical. Governments must:
Awareness remains a barrier—many Australians are simply unaware of the digital services available to them, especially during major life events. Proactive, personalised outreach can help close this gap, ensuring that citizens know what support is available and how to access it.
Australia’s digital government strategy has delivered strong results, but the journey is far from over. The next phase of transformation must prioritise equity, accessibility, and trust. By harnessing the power of AI and emerging technologies—while upholding the highest standards of ethics, transparency, and inclusion—governments can ensure that no citizen is left behind.
Bridging the digital divide is not just a matter of technology; it is a commitment to social inclusion and fairness. With the right strategies, Australia can create a digital government that truly serves every citizen, now and into the future.