From longstanding entrenched challenges, a hangover from the pandemic to new-world technology changes, we take a look at the operational issues facing our state and local agencies.
Whilst the COVID-19 pandemic contributes to declining income across the public sector, the economic recovery from the pandemic has led to an uneven expansion of government across agencies. Taxation revenue at a state and local level is under pressure to deliver more services per capita and many state governments have pledged to achieve net zero emissions by 2050. The recent change of the NSW state government to Labor, has completed the sweep of red across mainland Australia with the only LNP state government being in Tasmania at the current time.
The future of the public sector is will be determined by the leadership of our state and local government agencies in addressing these challenges and rebuilding a stronger, healthy society in the aftermath of the pandemic and economic downturn.
| Top 10 issues facing State government | Top 10 issues facing Local government |
| 1. Budget constraints: State government agencies in NSW may face financial constraints due to budget cuts, which could impact their ability to deliver services effectively. | 1. Financial Sustainability: Local government bodies may face financial constraints due to limited revenue sources and competing demands for funding. |
| 2. Resource allocation: Agencies may need to allocate resources effectively to ensure they are achieving their objectives and delivering services to the public. | 2. Service Delivery: Delivering services effectively and efficiently, particularly in the face of changing public demands and expectations, may be a challenge for local governments. |
| 3. IT infrastructure: Upgrading and maintaining IT infrastructure may be a challenge for some agencies, particularly those with legacy systems. | 3. Workforce Management: Recruiting and retaining a skilled and diverse workforce may be a challenge for some local governments, particularly in areas with high demand for workers. |
| 4. Workforce management: Recruiting and retaining a skilled and diverse workforce may be a challenge for some agencies, particularly those in areas with high demand for workers. | 4. Infrastructure Maintenance: Maintaining infrastructure, including roads, buildings, and public spaces, is a key responsibility of local government but can be a challenge due to limited budgets and resources. |
| 5. Compliance and regulation: Agencies must comply with relevant legislation and regulations, which may require significant resources and expertise. | 5. Community Engagement: Engaging with the local community, including residents, businesses, and other stakeholders, is critical for local government to understand community needs and priorities. |
| 6. Performance measurement: Measuring and reporting on performance is important for accountability and transparency, but may require significant resources and expertise. | 6. Regulatory Compliance: Local governments must comply with relevant legislation and regulations, which may require significant resources and expertise. |
| 7. Stakeholder engagement: Engaging with stakeholders, including the public, industry, and other government agencies, may be critical for some agencies, particularly those responsible for delivering public services. | 7. Collaboration and Coordination: Collaborating and coordinating with other levels of government, community organizations, and other stakeholders may be necessary for local government to achieve their objectives and deliver services effectively. |
| 8. Service delivery: Delivering services effectively and efficiently, particularly in the face of changing public demands and expectations, may be a challenge for some agencies. | 8. Technology and Data Management: Utilizing technology and effectively managing data may be a challenge for some local governments, particularly those with limited resources. |
| 9. Collaboration and coordination: Collaborating and coordinating with other government agencies and stakeholders may be necessary for some agencies to achieve their objectives and deliver services effectively. | 9. Planning and Development: Planning for growth and development, including land-use planning and zoning, can be complex and contentious. |
| 10. Risk management: Managing risks, including legal, financial, and reputational risks, may be a challenge for some agencies, particularly those in high-risk areas such as law enforcement and emergency services. | 10. Risk Management: Managing risks, including legal, financial, and reputational risks, may be a challenge for local government, particularly in high-risk areas such as emergency management and disaster response. |
How can Prosperity help?
Prosperity’s dedicated public sector team service our clients at a federal, state and local government level. The public sector is a chosen niche specialty for our firm and our team have served the public sector for over 30 years as accountants, auditors and advisers. This direct experience allows us to use our insight and experience to provide you with greater value from traditional accounting, audit and advisory firms.
We add value to our growing number of state and local government clients across Prosperity’s integrated services, including:
| Value adding service | The Prosperity difference |
| Saving money and keeping your team happy through a fleet conversion | The emphasis on “efficiency dividends” has seen many government agencies focus on identifying opportunities to improve efficiencies and rationalise costs. Reviewing fleet arrangements is one of them. Our Prosperity Smart Drive division specialise in providing novated leasing services to Local Government and has been doing so for over 10 years. A recent example for a council transitioned 91 employees to a novated leave. The overwhelming feedback from employees was positive, especially relating to their ability to select the car of their own choice. The Council saved up to an estimated $173,000 by switching non-tool of trade vehicles to novated leases. |
| Employee benefits - helping your valued team members achieve their financial goals | In todays’ highly competitive business market, how well you reward your team is no longer simply a matter of dollars. It’s about how well the remuneration package you offer performs for them. Despite this, very few government organisations actually have any form of tailored remuneration programs beyond the standard salary packages. So in offering one it gives you a strong competitive advantage. Prosperity’s employee benefits services include:
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| Maximising fuel tax credits reimbursements | Claiming fuel tax credits is often overlooked or underclaimed, because the process can be complex. This means businesses could potentially be missing out on a significant reduction in fuel operating costs. At Prosperity our tax specialists work with businesses to ensure they are claiming the maximum fuel tax credits they are entitled to for the excise embedded in the cost of fuel they use. |
| Driving insights and adding value through internal audit | At Prosperity, assessing risk, reviewing internal controls and analysing systems are merely starting points for our internal audit services. Armed with a deep understanding of government, we use this information as a springboard to produce commercial recommendations for refining and strengthening your operations. Our team includes subject-matter experts and is not afraid of embarking on “next generation” internal audit engagements such as culture audits, data analytics/management, automation projects, all matters of technology and sustainability reviews. |
| Identifying the true story of government through data visualisation | Prosperity clients get more value from their data by unlocking the power of data analytics. We use various technologies to build solutions based on interactive and automated reporting which can give you new insights into your business as well as giving you back the time to focus on your customers, community and stakeholders. There’s a story behind your data and we can help this come to life. Whether it is building a centralised dashboard that pulls your different sources of client information together or creating a benchmarking tool that allows you to compare different divisions, Prosperity has the data solution for you. |
| Paying the right amount of GST and FBT in a government context | Australia's tax regime is complicated and comprehensive. Planning the right tax strategies for your business will ensure you have the most control over the ever-changing taxation landscape. With the right advice and systems, government entities can anticipate tax implications, maximise growth opportunities and reduce their compliance burden. Prosperity’s specialist tax team regularly consult to the government sector on a range of indirect taxes including Goods and Services Tax (GST) and Fringe Benefits Tax (FBT). Clients value our ‘no surprises’ approach based on regular communication and personal involvement. |
| Reducing risk in complex project environments | Government projects exist in a unique environment, needing to balance transparency, commercial outcomes, and demonstrating effective use of tax-payer/rate-payer monies. The value and nature of projects also varies significantly from IT, social/community, infrastructure and business projects. Many government agencies do not have a project management office or dedicated project management officer with expertise across this broad range of projects. Prosperity’s project management specialists provide agile project reviews to assist clients in delivering projects on time, on budget and managing risks in the complex project management environment of the public sector. |
| Protecting your most vital resources through IT and cyber security reviews | Information security risks and the threat of cyber-attacks have never been more prevalent. Regular and ongoing review of IT general controls, IT security protocols and cyber resilience is essential in the public sector. This is especially so given the nature of the information held by agencies and the transparency demanded of the sector by the Australian public. Prosperity’s team of CISA-certified IT auditors analyse our clients’ systems across the relevant benchmarks (Essential 8, Mandatory 25 and ISO 27001) to provide a practical roadmap to enhanced maturity postures. |
| Three decades of experience working alongside State Audit Offices | Prosperity’s depth of experience ensures our team actively search for recommendations that add value through external audit services. This means identifying areas of waste, potential non-compliance and benchmarking across our growing number of public sector clients. |
Introducing our Government Specialist team
Prosperity’s dedicated Government sector team has over 30 years’ experience servicing our clients at a federal, state and local government level.
 Director of Corporate Assurance
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 Director of Corporate Assurance |
National Employee Benefits Manager |
Data Scientist |
