In Australia, e-government is continuously re-defining service boundaries. While this may be good in the case of transactional interactions, for example the online submission of tax returns, it is less clear that interpersonal services, such as working closely with the long-term unemployed, are best delivered digitally. We consider the impact of social services digitisation on vulnerable communities drawing on an analysis of remote Aboriginal communities. Digital uptake affords great opportunities, but it also carries risks. Some communities have no digital infrastructure and in certain cases traditional face-to-face services have been curtailed, leaving those not online with reduced assistance. We find that concerns about the ‘digital divide’ are well founded. Problems generated by e-government flow across boundaries and appear left to the third sector to resolve with the state playing an even more diminished role in the lives of disadvantaged citizens.