Despite the initial slow progress, governments around the world have fi nally adopted the Internet as means of interactions with citize ns and delivering public services. Despite the strides made by many Western governments, such as Australia, in implem enting e-government, significant barriers to the evolution of fully-fledged e-government services s till exist, one of which is the phenomenon of digital divide. Digital divide in Australia, a developed count ry with an advanced tec hnological base, is caused by demand-pull factors, and thus, require the application of social setting approaches in understanding the phenomenon and subsequently, implementing measures to narrow the digital divide. This paper discusses the digital divided issues in developed c ountries, strategies to narrow the digital divide in Australia, and issues for further research.