As 2025 unfolds, Australian local governments will face a complex mix of challenges and opportunities set to redefine their operations and interactions with communities, writes Aaron Likely.
A combination of budget constraints, shifts in talent, advances in technology, and evolving communication channels will influence how councils deliver services, protect data, and engage with residents. Some of the key trends to watch in the new year include:
Doing more with less
Budget constraints are likely to remain a prominent issue in 2025, with councils facing the daunting task of delivering high-quality services while dealing with capped rates and limited funding. Residents and ratepayers continue to expect a growing list of services, from infrastructure improvements and waste management to enhanced public safety and environmental initiatives. However, financial limitations mean councils must achieve these goals with fewer resources.
In response, they are likely to prioritise efficiency, investing in tools and strategies that stretch their budgets without compromising service quality. Cost-cutting measures, such as streamlining internal operations, seeking alternative funding sources, and forging partnerships with private entities, will become increasingly common.
Attracting new talent to drive innovation
Historically, the local government sector has relied on a steady flow of internal talent, with many senior positions filled by those who have built careers within the field. However, as expectations grow and demands on councils become more complex, attracting talent from outside the sector is expected to increase.
This influx of external talent may inspire changes to long-established methods of delivering services, as individuals from other industries introduce new strategies, technologies, and processes. By bringing in professionals with expertise in areas like digital transformation, environmental sustainability, and data analytics, councils can reshape and modernise their service delivery models.
Regional councils may face recruitment challenges
While larger metropolitan councils may be well-positioned to attract top talent, regional councils face a different reality. Many skilled professionals prefer the amenities and career opportunities offered by urban areas, leaving rural councils struggling to fill key management positions. This issue is likely to persist in 2025, forcing regional councils to think creatively about how to attract and retain talented staff.
In response, regional councils may begin offering higher salary packages and more robust incentive programs to make their positions more competitive. Additionally, flexible work arrangements, professional development opportunities, and clear pathways for career progression could be emphasised to make these roles more appealing.
Cybersecurity will remain a key priority
As local governments digitise more of their services, the threat of cyber attacks will continue to grow. Cybersecurity will remain a pressing focus in 2025, with councils placing a high priority on cyber resilience to protect both their operations and the sensitive data they handle. A data breach or system disruption could not only harm council operations but also erode public trust – a risk that councils cannot afford.
Increasing numbers of councils are likely to consider making use of external chief information security officers to strengthen their cybersecurity measures. This approach allows smaller councils, which may lack in-house expertise, to access the skills and tools required to manage cybersecurity effectively.
AI will be used to boost productivity
Artificial intelligence is rapidly becoming an essential tool in local government operations, and 2025 is expected to see an even greater reliance on the technology to streamline workflows and enhance productivity.
AI applications, from automated document processing to predictive analytics, can help councils manage resources more efficiently and reduce the time spent on routine tasks, freeing up staff to focus on higher-value activities.
However, implementing AI in local government requires a co-ordinated, whole-of-council approach to technology integration. Data from various departments must be centralised, with a unified platform serving as the backbone for AI-driven projects.
Social media will become an important communication tool
Social media’s role as a communication channel for local governments is set to expand in 2025. Councils will increasingly use platforms such as Facebook, Twitter (X), and Instagram to connect with residents, share information about services and events, and provide real-time updates during emergencies. By fostering direct communication with communities, social media enables councils to better understand residents’ needs and respond to feedback more effectively.
Navigating a complex future
As local governments map out their plans for 2025, they will need to adapt to an environment marked by financial constraints, technological advancements, and changing workforce dynamics.
Balancing budgetary limitations with the increasing demand for services will require a combination of strategic resource allocation and innovative service delivery models. Attracting talent from outside the sector will bring fresh perspectives, while regional councils may face specific recruitment challenges.
In this evolving landscape, cybersecurity and AI will play pivotal roles in ensuring councils remain resilient and productive. Social media will enhance the ability to engage with communities, allowing for more responsive and inclusive governance.
Local governments that proactively address these trends will be well-positioned to meet the needs of their residents in 2025 and beyond.
Aaron Likely is general manager – core applications, at Atturra
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