As Australia’s digital government transformation accelerates, trust has emerged as a critical enabler—and barrier—to the adoption of digital services. While satisfaction with digital government remains high, with over 90% of Australians expressing positive experiences, recent years have seen a sharp rise in concerns about data privacy and security. These concerns are particularly acute among younger Australians, those in financial hardship, and minority groups—segments of the population that stand to benefit most from accessible, efficient digital services, yet are at greatest risk of being left behind.
The digital divide in Australia is no longer just about access to technology or infrastructure. It is increasingly defined by psychological barriers: trust, confidence, and perceptions of risk. According to recent research, more than half of Australians (52%) have lost trust in the government’s ability to protect their personal data, a figure that rises to 59% among those under 45. Concerns about data privacy have grown by 11% in the past year alone, with 48% of citizens now more worried about how their information is managed.
This erosion of trust is not abstract. High-profile data breaches and the rapid emergence of new technologies—such as digital identity systems and artificial intelligence (AI)—have heightened public anxiety. For those already facing financial stress or social disadvantage, these concerns can be a decisive factor in whether or not they engage with digital government at all.
The top data privacy and security concerns among Australians include:
These anxieties are compounded by a lack of transparency around how data is collected, stored, and shared. Citizens want to know not just that their data is secure, but also how it is being used—and by whom. The desire for transparency is especially strong among those with recent mental health struggles or precarious finances, with over half of these groups seeking full visibility into the technologies and processes that underpin digital government.
When trust falters, so does adoption. Research shows that those in financial hardship, minority groups, and younger Australians are less likely to use digital government services, even though they are often the most in need of support. The digital divide is thus reinforced not only by economic and educational barriers, but by a crisis of confidence in the system itself.
This is particularly evident in the uptake of digital identity solutions like myGovID and digital wallets. While these tools offer convenience and security, a 10% gap persists between higher and lower earners in their use—driven in part by concerns over data safety. Similarly, support for AI in government is high (55% overall), but 94% of Australians expect strong governance and transparency, and nearly half want full insight into how AI systems operate.
Restoring and sustaining public trust in digital government requires a holistic approach that addresses both technical and psychological dimensions. Here are key strategies for government agencies:
Australia’s digital government journey is at a crossroads. The promise of more accessible, efficient, and personalised services can only be realised if trust is rebuilt and sustained. By prioritising transparent communication, robust data governance, and genuine citizen engagement, governments can address the psychological barriers that now define the digital divide.
At Publicis Sapient, we believe that trust is not a static achievement, but an ongoing commitment. As digital identity and AI become central to public service delivery, the imperative is clear: put citizens at the heart of every decision, and make transparency, security, and inclusion the cornerstones of digital transformation. Only then can Australia unlock the full potential of digital government for every citizen.