Australian Local Government CEO Index 2026
Australia’s local government leaders are navigating a tougher operating environment.
The Australian Local Government CEO Index 2026 captures the perspectives of 112 CEOs across Australia, revealing the leadership, financial, operational and technology pressures shaping the sector.
Now in its sixth edition, the Index gives local government leaders an opportunity to benchmark their priorities, learn from their peers and understand how councils are responding to a changing operating environment.
Why this report matters
For CEOs & executive leaders
Benchmark your priorities against local government leaders across Australia, from financial sustainability and organisational performance to leadership capability and wellbeing.
For people & workforce leaders
Understand where councils are experiencing leadership and talent gaps, which capabilities are hardest to find and how workforce priorities are changing.
For technology & transformation leaders
See how councils are approaching AI, cyber security, digital transformation and shared services, including where capability and preparedness remain behind ambition.
What the research says
The 2026 CEO Index points to a sector focused on improving performance while navigating increasing financial pressure, persistent capability gaps and accelerating technology change.
92%
say improving organisational performance and community outcomes is a key priority.
91%
are concerned about leadership talent gaps and difficulties accessing the right skills.
80%
report economic conditions negatively affected their council’s financial sustainability.
21%
say their organisation is prepared or very prepared for the future impacts of AI.
Seven themes shaping Australian local government
The research explores seven connected areas influencing how councils lead, operate and prepare for what comes next.
01
Leadership and talent
Leadership capability remains one of the sector’s biggest priorities and constraints. CEOs continue to report talent gaps across executive, technical and specialist roles.
02
Financial sustainability
Financial pressure is intensifying. Councils are focusing on service redesign, asset management, procurement discipline and new revenue opportunities.
03
Performance and operations
Improving performance and community outcomes is now a central priority, with councils looking closely at costs, service models, leadership and digital transformation.
04
AI and technology
Cyber security remains the highest technology priority, while AI is rapidly moving up the agenda. Expectations are high, but organisational preparedness remains limited.
05
Shared services
More than half of councils already share non-technology services, while technology sharing remains comparatively limited and presents further opportunities for collaboration.
06
ESG and climate change
ESG preparedness is gradually improving as councils embed sustainability, climate risk and resilience more deeply into strategy and planning.
07
Wellbeing
Governance pressures, financial constraints and workforce challenges continue to affect CEOs, while leadership capability and psychosocial safety remain important workforce priorities.
What you’ll find inside
Six years of local government insight
See how CEO priorities have shifted since 2021, from pandemic disruption and business continuity towards sustained financial pressure, organisational performance and leadership capability.
Leadership and talent
Explore the sector’s most significant leadership and skills gaps, including the continuing challenge of attracting engineers, senior executives and other specialist capability.
Financial sustainability
Understand how economic conditions are affecting councils and where CEOs are focusing to improve long-term sustainability.
Performance and service delivery
See how councils are approaching service reviews, operational excellence, cost containment and improved community outcomes.
AI, technology and shared services
Explore AI preparedness, technology priorities, transformation risks and the potential for greater collaboration between councils.
Inside perspectives from local government CEOs
Hear directly from leaders across Australian councils on leadership, financial sustainability, performance, AI, sustainability and wellbeing.
About the Australian Local Government CEO Index
Now in its sixth edition, Davidson’s Australian Local Government CEO Index brings together the experiences and perspectives of local government leaders across Australia.
This year, 112 CEOs contributed to the Index, sharing their perspectives on the most pressing leadership, operational and transformation challenges facing the sector.
The report combines survey findings with comparative analysis, expert commentary and practical examples to help leaders benchmark their thinking and learn from the experiences of their peers. The report itself positions the Index as more than research: a way for leaders to test priorities and strengthen decisions affecting their organisations and communities.
Read the Australian Local Government CEO Index
Explore what local government CEOs across Australia are experiencing, where priorities are shifting and how councils are responding.
Davidson connection
Supporting local government from strategy through delivery
For more than 35 years, Davidson has worked alongside local government leaders as they navigate changing community expectations, financial pressure, workforce challenges and technology transformation.
Our teams bring together expertise across Strategy & Performance, Executive & Talent and Technology Consulting, helping councils strengthen organisational performance, build leadership and workforce capability, and deliver complex change.
