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INNOVATION REPORT

Innovation in Government: What Citizens Want vs What's Being Delivered

Federal + all 8 state/territory jurisdictions — March 2026

We scanned news, expert commentary, government reports, and citizen surveys to measure the gap between what Australians expect from government innovation and what's actually being delivered — across digital services, AI, cyber security, data privacy, service delivery, and international benchmarks.

55/100

Overall Sentiment

7

Areas Tracked

2nd

OECD DGI Rank

22%

Cyber Compliance

Sentiment Temperature by Innovation Area

Global Ranking

78/100

Service Innovation

68/100

Digital Services

65/100

Workforce

55/100

Data & Privacy

45/100

AI & Trust

42/100

Cyber Security

30/100

The Australian Innovation Paradox

Australia ranks 2nd globally on the OECD Digital Government Index and 1st on user-driven approaches — yet 79% of federal agencies fail basic cyber security standards, only 30% of citizens trust AI in government, and myGov draws persistent usability complaints. The gap between world-class strategy and ground-level delivery is the defining challenge for government innovation in 2026.

Key Numbers

$9.7B committed

Federal Digital Budget

$5.9B

Annual Digital Spend

103 active

Digital Projects

26+ across AU/NZ

Innovation Units

70% daily use

AI Adoption (APS)

30%

AI Public Trust

22% at Level 2

Cyber Compliance

2.6M verified

Service VIC Identities

Citizen Voices

What Australians are actually saying about government services — drawn from surveys, audits, and research across diverse policy areas.

92 percent of survey respondents said they would use additional digital government services

Digital Services
Positive
PwC Australia Citizen Survey 2022 (Survey)

79% of Australians are not using digital services because they are unaware about what services are available or have concerns about information requested or have experienced technical issues

Digital Services
Negative
Publicis Sapient 2025 (Research)

An estimated 1.26 million low-income households were in financial housing stress in 2024-25 spending more than 30% of their disposable income on housing

Housing
Negative
AIHW Housing Affordability Report 2024-25 (Report)

NDIS participants aged 15+ reported a 42% relative improvement in life satisfaction since entering the Scheme — 62% felt satisfied with their life

NDIS
Positive
NDIS Satisfaction Survey (Survey)

I am not expected to behave old I do not feel old I do not want to behave old — 105-year-old witness to the Royal Commission

Aged Care
Positive
Aged Care Royal Commission Final Report (Royal Commission)

myGov is rated Bad with 1.7 out of 5 on Trustpilot — users describe the system as frustrating and an embarrassment to Australia

Digital Services
Negative
Trustpilot (Review Platform)

Principal and teacher workloads are unsustainable and more and more teachers are leaving the profession early

Education
Negative
National Survey of 25,000 Education Stakeholders (Survey)

43% of respondents were extremely concerned about electricity prices with a further 36% quite concerned

Energy
Negative
Energy Consumers Australia Survey (Survey)

55% of Australians favour extensive usage of AI in government services

AI
Positive
Publicis Sapient Digital Citizen Report 2024 (Research)

Citizens who give feedback have significantly higher overall trust in government institutions as do citizens who receive a response from government outlining next steps

Trust
Positive
PwC Australia Citizen Survey 2022 (Survey)

Impossible to navigate with multiple code numbers and silly secret questions. I gave up. Why can't they make this SIMPLE?

Digital Services
Negative
Real myGov user, Trustpilot (Trustpilot Review)

Won't let me update bank details online, tells me I have to do it in person or via phone. Over an hour wait time. Very telling when the phone service keeps reminding you not to verbally abuse their staff.

Digital Services
Negative
Real myGov user, Trustpilot (Trustpilot Review)

Couldn't remember my sign in PIN. There are so many volumes of confusing information, for someone in their 8th decade it is an impossible minefield.

Digital Services
Negative
Elderly myGov user, Trustpilot (Trustpilot Review)

It locked me out when I tried to link Medicare using my passport credentials. It also sent an SMS code to my old phone number. Now I'm on hold for 15 minutes. A perfect example of government incompetence.

Digital Services
Negative
Real myGov user, Trustpilot (Trustpilot Review)

It's a complete dogs breakfast. Need higher security to access anything but can't use documents if you have set up another email. Total schmozzle.

Digital Services
Negative
Real myGov user, Trustpilot (Trustpilot Review)

This is Australia! We should have better than this. There needs to be functionality for when an Australian is not in Australia and needs to access services.

Digital Services
Negative
Overseas Australian, Trustpilot (Trustpilot Review)

Going to some place on the other side of the city every day for 3 weeks is INSANE, just to continue receiving less than half of minimum wage.

Employment
Negative
JobSeeker recipient, r/CentrelinkOz (Reddit)

I'm on DSP and trying to apply for an advance payment through the app. I'm low on money due to moving house. The process is confusing and unclear.

Cost of Living
Negative
DSP recipient, r/CentrelinkOz (Reddit)

My Medicare claim was sent to a closed bank account. The logic of the Medicare contact centre doesn't make any sense at all.

Health
Negative
Real Services Australia user, Trustpilot (Trustpilot Review)

So much better now with more features and functionality. Faster, better UI. But it takes too long to speak to a human — need to waste an hour on hold.

Digital Services
Positive
Real ATO user, Trustpilot (Trustpilot Review)

Innovation Ideas

36 evidence-backed innovation ideas for Australian government, drawn from citizen demand data, international best practice and emerging technology opportunities.

Life Events Service (Tell Us Once)

When a major life event happens (birth, death, marriage, moving) citizens tell government once and all agencies update automatically — no repeat forms across Centrelink, Medicare, ATO etc.

Estonia X-Road saves 844 years of work time annually. UK Tell Us Once reduced 44 notifications to 1 for bereavement.
Impact: High
Effort: High
Digital Services
Trust
Inspired by: Estonia X-Road / UK Tell Us Once

Proactive Eligibility Engine

Government automatically identifies citizens eligible for payments and services using existing data — push notifications rather than requiring citizens to discover and apply.

Norway automated child benefit system. 79% not using digital services due to awareness gaps (Publicis Sapient 2025).
Impact: High
Effort: High
Digital Services
Welfare
Cost of Living
Inspired by: Norway auto-enrollment / Taiwan push services

AI-Powered Claims Processing

Deploy AI/ML to pre-fill, assess and fast-track straightforward claims across Medicare, Centrelink and other payment services — human review for complex cases only.

Services Australia OCR/NLP pilots reported 95% accuracy, halved some Medicare processing times, cut parental leave backlog from 31 days to 3.
Impact: High
Effort: Medium
AI
Digital Services
Health
Inspired by: Services Australia AI Strategy 2025-27

Real-Time Service Dashboard

Public-facing dashboard showing live government service performance — wait times, processing times, satisfaction scores, queue lengths — for every major service.

Service NSW customer satisfaction went from 13% to 95% with transparency and accountability. Trust at 58% (APSC 2024).
Impact: Medium
Effort: Medium
Digital Services
Trust
Inspired by: Service NSW transparency model

Regional Digital Access Hubs

Physical community hubs in regional towns combining high-speed internet, digital literacy training, assisted digital service access and face-to-face government support.

53% regional satisfaction vs 60% metro (APSC 2024). 33% of lower-income households struggle with digital services.
Impact: Medium
Effort: Medium
Digital Services
Education
Inspired by: Service NSW 158 centre model

Unified Government App

Single mobile app replacing myGov with life-event navigation, modern UX, push notifications and digital wallet for all government documents.

myGov rated 1.7/5 on Trustpilot. Service Victoria 1.4M app installs. 40% report negative myGov experiences (ANAO).
Impact: High
Effort: High
Digital Services
Inspired by: Service NSW / Service Victoria app models

Automatic Bulk Billing Navigator

Digital tool showing real-time bulk billing availability by location, wait times and GP availability — integrated with Medicare data and booking systems.

Bulk billing fell from 88.8% to 77.3%. 39% travel distance to find affordable GP. Patient out-of-pocket costs doubled to $1.66B.
Impact: Medium
Effort: Low
Health
Digital Services
Inspired by: Medicare data / Seniors Survey

NDIS Plan Navigator

Simplified digital tool that guides NDIS participants through plan management in plain language — auto-suggests relevant supports based on disability type and goals.

NDIS consistently seen as complicated and stressful to navigate. Yet outcomes are strong — 42% life satisfaction improvement.
Impact: Medium
Effort: Medium
NDIS
Digital Services
Inspired by: NDIS Satisfaction Survey data

Government Red Tape Calculator

Online tool for small businesses showing total estimated compliance hours and costs across all levels of government — benchmarked against OECD peers.

73% of businesses perceive increased regulatory burden (ACCI). 68% believe their industry is overregulated.
Impact: Low
Effort: Low
Employment
Digital Services
Inspired by: ACCI Red Tape Survey

School Resource Equity Dashboard

Public dashboard showing per-student funding, facilities quality, teacher-student ratios and resource allocation across every school.

29% of parents prioritise infrastructure as top funding need (APO). Teacher workloads unsustainable (25,000 respondent survey).
Impact: Low
Effort: Low
Education
Inspired by: APO parent survey

Energy Cost Reduction Advisor

Personalised digital tool using household energy data to recommend specific actions — solar, battery, tariff switching, insulation — with direct links to government rebates.

43% extremely concerned about electricity prices (ECA). Retail prices doubled since 2009-10. 22% say solar had biggest impact.
Impact: Medium
Effort: Low
Energy
Cost of Living
Inspired by: Energy Consumers Australia Survey

Aged Care Home Support Platform

Digital platform connecting older Australians with home-based care services — ratings, reviews, availability and costs — empowering choice to age in place.

Australians want to stay in their homes longer. $4.3B Support at Home program. Royal Commission heard 10,500 submissions.
Impact: Medium
Effort: Medium
Aged Care
Digital Services
Inspired by: Aged Care Royal Commission

Public Transport Real-Time Quality Index

Live quality index for public transport across all capital cities — reliability, crowding, safety, frequency — with comparison between cities.

Reliability and crowding are top improvement priorities (TOPS 2024). 30% say public transport is highest transport priority.
Impact: Low
Effort: Low
Transport
Inspired by: Transport Opinion Survey 2024

Cross-Agency Data Passport

Citizen-controlled digital consent system allowing people to share verified information across government agencies with full transparency.

Only 24% fully comfortable with cross-agency data sharing but 37% willing if experience improves (Publicis Sapient).
Impact: High
Effort: High
Digital Services
Trust
Inspired by: Estonian X-Road model

Digital Apprenticeship for Government

National program recruiting 5,000 digital apprentices into APS annually — targeting regional young people, First Nations Australians and career changers.

APS must double digital workforce by 2030. 20% of tech workers retiring. Thodey Review found long-running under-investment.
Impact: Medium
Effort: Medium
Employment
Education
Inspired by: Thodey Review / ACS workforce data

Citizen Innovation Labs

Permanent citizen co-design labs in each capital city where public can test prototype government services and provide feedback.

Service NSW Design Thinking — satisfaction from 13% to 95%. Citizens who give feedback have significantly higher trust (PwC).
Impact: Medium
Effort: Medium
Trust
Digital Services
Inspired by: Service NSW design thinking model

Government API Marketplace

Expanded api.gov.au as full marketplace where private sector can build on government data and services — enabling fintech, healthtech, edtech innovation.

National API Design Standards approved 2019. api.gov.au in beta Nov 2024. Singapore GovTech Stack shows scalable model.
Impact: High
Effort: High
Digital Services
AI
Inspired by: api.gov.au beta / Singapore GovTech Stack

Mandatory Plain Language Standard

All government communications must meet plain language readability standards — with AI-assisted testing and citizen readability scores published for every agency.

Monash found cancer screening information written above recommended readability levels. 79% not engaging digitally partly due to understanding barriers.
Impact: Medium
Effort: Low
Digital Services
Trust
Inspired by: Monash University accessibility research

One-Click Bank Details Update

Allow citizens to update bank details for all government services (Medicare, Centrelink, ATO) in one place online — no phone calls, no office visits, no hour-long hold times.

Trustpilot user: 'Won't let me update bank details online, tells me to do it in person or via phone. Over an hour wait.' Medicare claim sent to closed account because system couldn't sync.
Impact: High
Effort: Low
Digital Services
Cost of Living
Inspired by: Real Trustpilot reviews of myGov (April 2026)

Senior-Friendly Government Portal

Simplified large-text government interface for over-65s — one PIN, no secret questions, phone support that doesn't require navigating 6 menus first.

Trustpilot user in their 8th decade: 'So many volumes of confusing information it is an impossible minefield.' Multiple elderly users report being locked out and giving up.
Impact: High
Effort: Medium
Digital Services
Aged Care
Inspired by: Real Trustpilot reviews from elderly myGov users

Phone Number Sync Across Services

When a citizen updates their phone number on any government service, it should propagate to all linked services automatically — preventing SMS codes going to old numbers.

Trustpilot user: 'It sent an SMS code to my old phone number, despite my new number being updated on the app.' Locked out, had to call and wait 15 minutes.
Impact: Medium
Effort: Medium
Digital Services
Inspired by: Real Trustpilot reviews of myGov (April 2026)

Overseas Australian Access Mode

Government services accessible from overseas with alternative verification — many Australians abroad can't complete identity checks that require Australian phone numbers or in-person visits.

Trustpilot user: 'There needs to be functionality for when an Australian is not in Australia and needs to access services.' Current system assumes everyone is in Australia.
Impact: Medium
Effort: Medium
Digital Services
Inspired by: Real Trustpilot review from overseas Australian

Abolish Pointless Work-for-the-Dole Travel

Stop requiring JobSeekers to travel across cities for 3-week training obligations when remote/local options exist — transport costs alone can eat half the payment.

Reddit r/CentrelinkOz: 'Going to some place on the other side of the city every day for 3 weeks is INSANE, just to continue receiving less than half of minimum wage.'
Impact: Medium
Effort: Low
Employment
Welfare
Inspired by: Real Reddit post from JobSeeker recipient (March 2026)

Instant Advance Payments via App

Streamline the advance payment process on the Centrelink app — clear eligibility criteria, instant decision, no confusing forms for people in financial crisis.

Reddit r/CentrelinkOz user on DSP: 'Trying to apply for an advance payment through the app. Low on money due to moving house. The process is confusing and unclear.'
Impact: Medium
Effort: Low
Welfare
Digital Services
Cost of Living
Inspired by: Real Reddit post from DSP recipient (March 2026)

Identity Document Reconciliation Service

Government tool that reconciles name mismatches across documents (maiden/married names, passport vs Medicare) instead of locking citizens out and requiring phone calls.

Trustpilot user: 'It locked me out when I tried to link Medicare using passport credentials.' Multiple users report name/document conflicts causing complete lockout.
Impact: High
Effort: Medium
Digital Services
Trust
Inspired by: Real Trustpilot reviews of myGov (April 2026)

Government Service Rating System

Public star ratings for every government service point — like Uber ratings for public services — so agencies face accountability pressure from visible citizen feedback.

ATO Trustpilot user: 'So much better now with more features. But takes too long to speak to a human.' Citizens already rating services — government should embrace it.
Impact: Medium
Effort: Low
Trust
Digital Services
Inspired by: Real Trustpilot reviews showing citizens already rating services

Universal Bulk Billing Directory

National real-time directory of every GP, specialist and allied health provider showing bulk billing status, next available appointment and patient reviews — replacing fragmented state-based systems.

Bulk billing rate at 81.4% nationally but varies wildly by region. 39% of patients travel significant distance to find affordable GP (Dept of Health 2026).
Impact: High
Effort: Medium
Health
Digital Services
Inspired by: Dept of Health bulk billing snapshot / Healthdirect model

AI Triage for Emergency Departments

AI-assisted triage system for hospital EDs that pre-screens patients via app before arrival — reducing wait times, directing non-urgent cases to GPs, and flagging high-acuity patients for immediate attention.

ED wait times averaging 19 minutes for triage but hours for treatment. AI triage pilots in UK NHS reduced unnecessary ED visits by 15%. Services Australia AI pilots showed 95% accuracy.
Impact: High
Effort: High
Health
AI
Inspired by: NHS AI triage pilots / Services Australia AI Strategy

Public Land Register for Social Housing

Open register of all government-owned land suitable for housing development — with automatic feasibility scoring, community consultation tools and fast-track planning pathways for social and affordable housing.

Australia predicted to fall 462,000 homes short of Accord targets. 254,571 households on social housing waitlist (12% YoY increase). Government owns vast underutilised land.
Impact: High
Effort: Medium
Housing
Inspired by: MDPI housing systems analysis / Housing Australia data

Rent Stabilisation Tech Platform

National rental data platform tracking real-time rents by suburb, flagging excessive increases, and automating tenant dispute resolution — giving renters transparent market data and enforcement tools.

Rents up 42.9% over 5 years. Rent burden at record 33.4% of pre-tax income. 1.26M low-income households in housing stress (AIHW 2024-25).
Impact: High
Effort: Medium
Housing
Cost of Living
Inspired by: SQM Research rental data / AIHW housing affordability

Free TAFE Digital Campus

Fully online TAFE platform offering free courses in high-demand fields (construction, nursing, clean energy, cybersecurity) — with virtual labs, mentoring and employer matching built in.

Free TAFE enrolments up 15% but physical access remains a barrier in regional areas. Skills shortage across construction, healthcare and clean energy sectors.
Impact: Medium
Effort: Medium
Education
Employment
Inspired by: DEWR Fee-Free TAFE program / Open Universities Australia model

Teacher Pay Parity Dashboard

Public dashboard comparing teacher pay, conditions and workload across all states and territories — driving national consistency and helping recruit and retain teachers in shortage areas.

Teacher workloads described as 'unsustainable' by 25,000 survey respondents. Teachers leaving the profession early. Wide pay variation across jurisdictions.
Impact: Medium
Effort: Low
Education
Employment
Inspired by: National survey of 25,000 education stakeholders / AITSL workforce data

Community Solar for Renters

Government-backed community solar program allowing renters and apartment dwellers to buy shares in local solar farms — receiving credits on their energy bills without needing rooftop access.

43% extremely concerned about electricity prices. Renters locked out of rooftop solar benefits. 33.4% of income going to rent leaves little for energy costs.
Impact: Medium
Effort: Medium
Energy
Housing
Cost of Living
Inspired by: Energy Consumers Australia Survey / US community solar models

Energy Poverty Auto-Detection

System using smart meter data and welfare payment records to automatically identify households at risk of energy poverty — triggering proactive outreach with rebates, hardship programs and efficiency retrofits.

Energy bill credits ended Dec 2025 with no replacement. Retail electricity prices doubled since 2009-10. Lower-income households disproportionately affected.
Impact: High
Effort: Medium
Energy
Cost of Living
Welfare
Inspired by: Energy.gov.au bill relief program / UK Warm Home Discount model

Integrated National Transport Card

Single contactless transport card accepted on all public transport across every Australian city — buses, trains, ferries, trams and ride-share — with automatic fare capping and concession integration.

Each city runs separate ticketing systems (Opal, Myki, go card, SmartRider). Tourists and interstate travellers face fragmented experience. 30% say public transport is highest priority.
Impact: Medium
Effort: High
Transport
Digital Services
Inspired by: Transport Opinion Survey 2024 / London Oyster-TfL model / Singapore EZ-Link

Congestion Pricing with Equity Safeguards

Time-of-day congestion pricing for major city corridors — with revenue ring-fenced for public transport investment and rebates for low-income commuters who have no alternative.

Congestion costs Australian cities $19B+ annually. Peak-hour road usage highly concentrated. Stockholm congestion charge reduced traffic 20% and improved air quality.
Impact: High
Effort: High
Transport
Environment
Inspired by: Infrastructure Australia / Stockholm congestion charge model

Research & Evidence

Key studies, audits and reports underpinning our analysis — from government agencies, international organisations and academic researchers.

David Thodey AO Panel · 2019

APS ill-prepared to grasp the opportunities of the future — lacks clear unified purpose, too internally focused — long-running under-investment in people, capital and digital.

Implement APS transformation through strong leadership — develop whole-of-service workforce strategy — establish APS professions model.

McKinsey & Company / Service NSW · 2021

Customer satisfaction increased from 13% (2012) to 95% (2021) — consolidated 800+ government processes — 158 centres across NSW.

Design Thinking implementation and private sector talent recruitment as key enablers of transformation.

Harvard Kennedy School · 2024

Estonia mandates state cannot ask citizens for same information twice — X-Road backbone saves Estonians 844 years of work time annually.

Key success factors — transparency, consistency, resilience, user-centric design and trust-building.

Digital Transformation Agency · 2026

Projects reporting Medium-High or High delivery confidence now account for 69.5% of total budget, up from 52.9%.

Strong leadership, robust governance, benefits management and strategic assurance improve project success rates.

Department of Industry, Science and Resources · 2024

45.7% of Australian businesses engaged in innovative activities — highest this decade. Government R&D investment increased 4.7% to $14.4B.

Increase commercialisation of R&D and focus on new-to-world innovation — only 5.2% of innovations are truly novel.

Digital Transformation Agency · 2024

By 2030 Australian government will use data and digital technologies innovatively including AI, quantum computing and digital twins.

Whole-of-government approach to data sharing and digital service delivery.

Independent Expert Panel · 2023

75% of survey respondents think government online services need improvement — 40% reported negative experiences — myGovID adoption under 1%.

Government agreed or agreed-in-principle to 9 of 10 recommendations — $10.8M initial investment approved.

Department of Finance / DTA · 2025

Clear path for next wave of digital transformation — built around 3 core pillars: Trust, People, Tools — all APS employees AI-enabled by mid-2026.

Drive practical actions for safe, responsible AI adoption across all agencies.

Services Australia · 2025

AI helps make processes faster and easier through adaptive and intelligent automation — OCR/NLP pilots reported 95% accuracy.

Deploy AI to reduce processing times — halved some Medicare processing times — cut parental leave backlog from 31 days to 3.

Publicis Sapient · 2024

93% of users satisfied overall — but 33% of lower-income households struggle with digital services — 55% favour extensive AI use.

Address digital divide and privacy concerns while expanding digital services.

OECD · 2024

Australian trust in federal government increased from 38% (2021) to 46% (2023) — but still below OECD average.

Continue trust-building measures through transparency and service improvement.

Royal Commission into Aged Care Quality and Safety · 2021

Over 10,500 submissions and 600 witnesses described a system in crisis — Australians want to age in their homes with dignity.

Fundamental reform of aged care system — $4.3B Support at Home program — rights-based approach.

NDIS / Every Australian Counts · 2026

42% improvement in life satisfaction — 78% choose how to spend spare time — but scheme consistently seen as complicated and stressful to navigate.

Simplify scheme navigation while maintaining participant choice and control.

Griffith University / Transparency International · 2024

Australia once international leader now failing to keep pace — piecemeal reforms inadequate — mateship culture enabling inappropriate influence.

Establish proper coordination and oversight at system level — address revolving doors between government and industry.

Perdana & Mokhtar (Academic) · 2025

Singapore Government Tech Stack creates scalable, reusable infrastructure — standardization with limited customization improves rapid deployment.

Balance innovation with oversight — diverse talent recruitment — cloud adoption facilitation critical.

Full Analysis & Methodology

Detailed methodology, full jurisdiction scorecards, case studies, international comparisons, and 12-month innovation roadmap projections are available in the full report.