Unleashing growth with digital innovation

Australia is experiencing shifting demographic trends and evolving community expectations, and local government authorities are at a pivotal moment. With younger generations leading a surge in council-community engagement, councils have a real opportunity to redefine their relationships with ratepayers, improve service delivery, and build trust through digital innovation led by transparency.

A 2024 Datascape survey on ratepayer engagement found that while Australians are actively engaged with their local councils, some feel unheard and dissatisfied with the level of responsiveness and transparency, with 33% seeking clearer and more frequent communication from their council. This presents both a challenge and a call to action for local governments: to uplift engagement strategies and invest in digital innovation that nurtures stronger connections with communities. 

The research highlights a significant gap between what citizens expect from their councils and their actual experiences. While overall engagement remains high, younger generations expect seamless, digital-first interactions – similar to their experiences with banks or airlines. However, local councils can often lag in digital service delivery, making engagement for both council staff and citizens more frustrating than frictionless.

A notable finding from the survey is that 40% of Australians believe investing in technology would increase their confidence in their council’s ability to deliver services. Councils that fail to prioritise digital innovation risk alienating their most engaged constituents, while those that embrace it stand to enhance satisfaction, efficiency, and public trust. 

Trust in local government hinges on transparency, particularly in financial decision-making. Nearly 90% of Australians surveyed believe that councils need to be more transparent about how funds are allocated and spent. Addressing this issue isn’t just about compliance – it’s about fostering a sense of community ownership and accountability.

“Councils are at a crossroads. Many are pausing and reassessing and going to market for a solution. The risk is that they’re investing in low-cost platforms that aren’t the future,” says Datascape Director of Local Government, John Wiggs.

“We as a sector need to be having this conversation with our partners. Are you buying something for now because it’s what you can afford? What issues should you be considering as you make this investment?”

To rebuild trust, councils must implement proactive communication strategies, such as open financial reporting, digital dashboards displaying real-time spending updates, and accessible data insights. By demonstrating fiscal responsibility and keeping the public informed, councils can position themselves as accountable, community-centered institutions. 

The role of digital innovation in local government extends far beyond efficiency – it has the power to reshape citizen experiences. Technology can streamline service delivery, improve engagement, and enhance accessibility, making it easier for residents to interact with their councils on their own terms. Mobile apps like Datascape’s Antenno, already in use by over 50 councils across Australia and New Zealand, exemplify this shift.

Councils like Shire of Manjimup in Western Australia, Western Bay of Plenty and Gore District in New Zealand, for example, turned to digital solutions to cut through the noise of social media and ensure that key messages reached the right audiences. By leveraging geolocation-based notifications, councils improved communication efficiency and engagement, proving that targeted digital tools can drive meaningful community interactions.

“Whatever needs to be done needs to be agile, nimble, cost-effective, and can’t wait too long. However, for real digital transformation, you need to uplift your core systems to a modern platform,” Wiggs explains.

Similarly, Tasmania’s Central Coast Council adopted Antenno to provide real-time updates and allow citizens to report issues seamlessly. The results? Strong public uptake and increased engagement, demonstrating that communities are eager to embrace digital channels when they deliver tangible benefits.

Despite the clear advantages of digital transformation, many councils remain constrained by outdated IT platforms. Legacy systems hinder agility and innovation, making it difficult to implement modern digital solutions. The challenge isn’t just technological – it’s also financial and cultural.

“Many councils struggle to articulate the value of upgrading aging systems to stakeholders,” says Datascape director John Wiggs. “The key to successful modernisation lies in producing a clear vision and robust business case, as well as securing funding and executing effective change management strategies.”

Rather than waiting for full-scale transformations, councils can adopt an incremental approach and do more with less – deploying user-friendly digital tools while planning for broader system upgrades. By prioritising citizen-facing solutions, councils can demonstrate quick wins that justify further investment in backend modernisation. 

Technology alone won’t drive growth – people will. A thriving local government culture requires investment in staff upskilling, process improvements, and tools that empower employees to be more responsive and innovative. Councils that foster a high-performance culture will not only improve internal efficiency but also enhance service delivery and public perception. The concept of unleashing growth invites reflection on what it takes for councils to thrive in an era of rapid change. Investing in modern digital solutions doesn’t just benefit citizens; it creates a more efficient, engaged, and high-performing workforce capable of delivering lasting community impact. 

True progress happens when councils shift from passive service delivery to active collaboration with their communities. Younger generations, in particular, seek co-creation opportunities where they can directly contribute to shaping local initiatives. Councils must embrace participatory governance models that enable residents to engage in decision-making processes, from participatory budgeting to interactive policy consultations. By fostering a culture of transparency, digital innovation, and active community engagement, councils can redefine their role as trusted enablers of growth. The path forward isn’t just about adopting new technology – it’s about embracing a new mindset, one that values collaboration, responsiveness, and long-term community empowerment. 

Australian councils stand at a crossroads. They can either continue with business as usual – risking further disengagement and inefficiency – or seize the opportunity to transform how they interact with citizens. Digital innovation and transparency aren’t optional; they’re essential for modern governance.

The key questions for local leaders to consider are: Are we investing in short-term solutions or future-proofing our digital infrastructure? How can we better communicate spending decisions and engage citizens in financial transparency? What steps can we take to make digital interactions with our councils as seamless as those with banks or airlines? How can we foster a culture where both staff and citizens feel empowered to contribute to positive change?

By embracing step-by-step innovation, prioritising transparency, and cultivating an engaged community, local governments can truly unleash growth – not just for councils, but for the people they look after.