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Local governments across Australia are facing a growing challenge: rising expectations from residents and businesses, while operating within constrained financial environments.

Despite their expanding responsibilities, many councils still rely on outdated funding models that haven’t kept pace with economic realities. Rate capping, cost-shifting from higher levels of government, and mounting infrastructure backlogs are further straining already stretched budgets.

With financial sustainability at risk, councils must explore new ways to do more with less and continue delivering quality services despite budget pressures.

The expanding role of local government

And the widening gap between funding and community expectations

Councils were once responsible for a limited set of core services: roads, rates, and rubbish. That is no longer the case.

According to a 2025 interim report by the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport, councils today are expected to deliver a broad range of essential services, including aged care, childcare, emergency management, housing, and environmental initiatives.

“They have increasingly been relied upon to deliver services and infrastructure which were traditionally under the purview of the Commonwealth, state and territory governments,” committee chair Luke Gosling said in the report.

“These additional responsibilities are placing a significant financial strain on local governments who are struggling to meet community expectations.”

This expansion has occurred without a corresponding funding increase, leaving many councils unable to raise enough revenue to support the needs of growing communities.

The result is a widening gap between what councils are expected to deliver and what they can afford. Infrastructure backlogs are estimated in the tens of billions. To balance their budgets, many councils are being forced to delay maintenance, raise fees, or reduce services.

Rural and regional councils are hit hardest. With vast geographic areas and smaller revenue bases, they must balance critical infrastructure like roads and bridges with social challenges like healthcare and housing.

Technology is key to financial sustainability

While cost-cutting may offer temporary relief, it’s not a long-term solution. To stretch their budgets further, councils need to focus on efficiency, smarter resource allocation, and process automation.

Modern, integrated technology can help councils reduce operational costs, streamline service delivery, and increase financial transparency. Key opportunities include:

  • Automating administrative processes: By automating manual tasks in finance, procurement, and other areas, councils can reduce errors and free up staff for higher-value work.
  • Smarter asset management: Infrastructure is a major cost. With proactive digital tools, councils can monitor conditions, forecast maintenance, and avoid expensive repairs.
  • Real-time financial insights: Spreadsheet-based budgeting is slow and static. With real-time insights, councils can improve forecasting, reporting and decision-making.
  • Digital service delivery: Moving services online reduces pressure on call centres and counters, while improving the citizen experience.

Making the case for digital transformation

Digital transformation isn’t just a cost-saving measure; it’s a smarter way to operate. It can help councils maintain service quality, improve community engagement, and build long-term financial resilience.

Several Australian councils have already seen results with TechnologyOne:

These examples (and there are more) show that the right digital investments lead to measurable savings, reduced complexity, and better outcomes for residents.

But adoption is still slow. Budget limitations, internal capacity, and change management challenges are common barriers. Failing to modernise, however, only compounds financial pressures over time.

The right technology partner is essential

Not all platforms are built for local government. Choosing the right technology partner is essential to ensure a successful digital transformation.

When selecting a technology provider, councils should consider:

  • Industry expertise: Does the provider understand the specific challenges faced by local government?
  • Scalability and flexibility: Will it grow with your needs?
  • Seamless integration: Can it replace or connect to existing systems seamlessly?
  • Security and compliance: Does it meet public sector data standards?

OneCouncil: purpose-built for local government

TechnologyOne’s OneCouncil delivered through our SaaS+ model, is a fully integrated solution designed specifically for local governments. It connects finance, HR, payroll, asset management, procurement and more, so councils can operate smarter, not harder.

OneCouncil provides:

  • Real-time data for better decision-making
  • Streamlined processes that reduce overhead
  • A secure, cloud-based platform with regular updates and support

With over 73% of Australian and New Zealand residents living in a council powered by our software, we’re helping local governments build financially sustainable, future-ready services.

Book a demo

OneCouncil FAQs

Need more information? See some of our most frequently asked questions (FAQs) on how TechnologyOne benefits local governments and councils below, or contact a TechnologyOne team member for more information.

DxP Local Government (DxP LG) is TechnologyOne’s Digital Experience Platform tailored specifically for local councils. It delivers an intuitive, citizen-centric digital experience by integrating customer service, knowledge management, and self-service functionality into one unified platform.

DxP LG ensures councils can streamline customer interactions, eliminate content duplication, and provide residents with fast, accurate information anytime, anywhere.

Learn more about the features of DxP LG

OneCouncil integrates Financials, budgeting, and reporting into a single platform, providing real-time visibility into financial performance. By automating manual processes and streamlining compliance, councils can optimise budgets, control costs, and make data-driven decisions that support long-term financial health.

OneCouncil’s products such as Enterprise Asset Management (EAM) enable councils to maximise the lifecycle value of their assets. With predictive maintenance, lifecycle tracking, and integrated reporting, councils can reduce downtime, minimise maintenance costs, and ensure compliance with asset regulations.

SaaS+ is TechnologyOne’s all-inclusive enterprise solution, providing a fully managed, end-to-end digital transformation experience. Unlike traditional SaaS offerings, SaaS+ includes everything from software implementation, upgrades, support, and security, all for a single annual fee.

For more details, visit the SaaS+ information page .

Ben Malpass
Executive Vice President, Local Government, TechnologyOne