Efficient traceability is paramount for Australia's biosecurity system and market access. Electronic identification (eID) offers higher traceability performance than that achieved with visual and mob-based identification used for the sheep and goats National Livestock Identification System (NLIS). The current study aims to gain an understanding of the barriers and motivations of using eID for NLIS sheep and goats in New South Wales (NSW) and to provide recommendations to support the transition to eID. A social research study using a mixed-methods approach was used through semi-structured interviews and a cross-sectional epidemiological and behavioural study among sheep and goat producers. The COM-B behaviour change model based on capabilities, opportunities and motivations was used as a framework for the study. A total of 269 participants informed this study: 25 interviews were conducted with government, industry and private stakeholders, and 184 and 58 sheep and goat producers participated in the cross-sectional study, respectively. The study identified poor understanding of the purpose and importance of NLIS among producers, with over two-thirds not supporting eID implementation. The main barriers identified to the eID implementation were practical, including costs, technology quality and increased workload. Attitudinal, behavioural and knowledge barriers, such as the perception of the current system providing efficient traceability and the perceived lack of benefits of eID were also identified. This study provides an in-depth analysis of practices and perceptions of stakeholders and producers on sheep and goat traceability and recommendations to address barriers identified, based on education and appropriate behavioural and technical support.