In many regional communities, local news is more than a source of information.
It informs citizens, holds power to account and provides a shared space to discuss and make sense of matters affecting the community.
Yet at a time when trusted information is needed more than ever, local news is disappearing from many parts of the country.
Since 2019, 184 news outlets have closed across Australia, leaving 29 local government areas without any local news service. Many more continue to operate under significant financial pressure, with fewer reporters to cover the issues that shape local life.
Without access to relevant and trustworthy local news, people are less informed, less connected and less able to participate in civic life, posing a threat to democracy and social cohesion.
As local news becomes harder to find, many Australians are increasingly turning to digital platforms such as social media, search engines and AI chatbots.
At least 58 per cent of Australians report using AI tools to seek information, although the true figure may be higher, as many users may not realise that AI systems are already embedded within the platforms and services they use.
However, where local news is scarce, AI models are likely to generate hallucinations based on incomplete and biased training data. When information is lacking, these systems fill gaps through prediction rather than verification, as AI models are designed to prioritise fluency over accuracy.
Despite very low levels of trust in news found on AI chatbots (19 per cent), only 13 per cent always follow links to original sources, heightening their concerns about misinformation (77 per cent). In fact, Australians are among the most concerned globally. Concern about misinformation and lack of relevant news can make people switch off from news altogether. The Digital News Report: Australia has tracked audience behaviour for over a decade.
The data shows that access to regional or local newspapers among regional audiences has halved since 2016, falling from 34 per cent to 17 per cent. We also monitor news avoidance, and the gap between regional and city audiences is widening. News avoidance among regional audiences rose sharply from 64 per cent in 2022 to 75 per cent in 2026, while it remained largely stable among city residents (69 to 66 per cent).
Addressing these challenges requires more than preserving existing models. It demands innovation. The future of local news will depend on developing new approaches to digital delivery and audience engagement, while maintaining the financial viability needed to support quality journalism. It involves experimenting with emerging technologies, designing new forms of audience engagement, and exploring ways to ensure local journalism remains discoverable on digital platforms.
Innovation should not be understood simply as adopting new technologies. At its core, innovation is about reconnecting audiences to news outlets, and strengthening the relationship between audiences and local journalists. To do this, news organisations will need to understand why people value and trust local news. Our research shows that trust in local news develops through ongoing relationships, and a belief that journalists have the community's best interests at heart - a concept we call "relational trust".
Local journalists are often part of the community they cover, reporting on issues that directly affect residents' daily lives, with a shared sense of identity.
Technology can help harness this trust and deliver locally relevant news, but it cannot replace the role of human journalists in building relationships, understanding local contexts and serving community needs.
Innovation should prioritise audience engagement and meeting people where they are. In today's hybrid media environment, audiences expect to access news anytime and anywhere. They want news that is available across different locations, devices and platforms, and that fits seamlessly into their daily lives. News organisations need flexible and audience-centred approaches that deliver trusted local news wherever people choose to engage with it.
It is encouraging that governments recognise the value of innovation in supporting a sustainable sector. Through the News Media Assistance Program, the Australian government has invited proposals for innovative projects under the News Innovation Fund, committing $31.5 million. The funds will support innovations in news production and distribution as well as help news organisations find sustainable solutions for delivering public interest journalism.
To maximise the impact of these investments, one important innovation lies in recognising the social value of news. Our research confirms that news provides people with a form of social currency; they can use information to participate in conversations, maintain social connections and reinforce their sense of belonging within communities. In that sense, innovation already happens among members of the community. Where there are gaps in local news provision, many people are willing to help create, share and distribute local information.
Regional residents are often stepping in to fill local news gaps by curating and sharing news to help others stay informed. This is particularly important for people from multicultural backgrounds, who may face additional barriers to accessing relevant local information. These community-led efforts highlight the strong demand for local news as well as the vital role that local news plays in community connection.
As digital disruption continues to reshape how Australians access information, investment in research, innovation and sustainable models for local journalism is not optional. It is necessary to ensure that all Australians have access to trusted local news that democratic participation and community wellbeing depend upon.
