This paper seeks to highlight a poorly-understood dimension of digital exclusion that is not related to access to information and communication technologies (ICTs), but rather to the reduction in flexibility for providing and administering public services following the implementation of an integrated e-government system. A case study of a project focused on reducing barriers to the delivery of driver licensing services to a remote indigenous community in Australia was undertaken and the data were analysed using Kling et al.'s socio-technical interaction network (STIN) modelling approach. The paper makes four recommendations to improve the licensing situation for the community that are induced from the findings. In particular the paper draws attention to the need to carefully analyse possible negative impacts of any e-government initiative for those at the margins of society. The paper aims to analyse the current situation as the foundation for recommending future actions. These can form the basis for subsequent interventions in the licensing situation. This research provides an outsiders' overview of the licensing situation and recommendations for change that take account of a diversity of viewpoints and interests. The paper contributes to our understanding of the relationship between ICTs and social exclusion in three ways. It provides a rich narrative describing the secondary impacts of integrated e-government systems, a theoretically grounded analysis of the situation and some recommendations for addressing some of the implications at both the community level as well as calling for more careful evaluation of possible negative consequences about shifting service provision to integrated systems.