20 August 2025 – for immediate release

Australia could unlock a $25 billion boost to the economy by 2035 if it closes its growing digital skills gap, according to the 2025 Digital Pulse report by ACS (Australian Computer Society) under the banner ‘Today, meet tomorrow’.

 

However, the report reveals that 150,000 businesses are already struggling with significant or severe shortages in digital capability, with impacts ranging from lost revenue to increased cyber risks.

 

The survey of 300 Australian C-suite executives and 1,200 workers also found:

• 51% lack at least one digital skill required for their role with the use of AI, cybersecurity and data analytics being among the most common skills gaps.
• University IT completions have grown by 11% yet half of graduates believe their qualifications are not relevant for their current role.
• Industry certifications and VET are highly trusted pathways to develop digital skills, yet nearly all (88%) of tech job ads still require university degrees.
• 45% of C-suite leaders report basic digital capabilities in at least one of the five digital capabilities such as the ability to read a digital transformation business case or knowledge on how data is used.
• Up to 30% more effective use of technology for businesses that reduce their skills gaps based on research from the OECD.
• Uplifting Australia’s cyber capabilities is an opportunity to reduce the $63 billion in annual cyberattacks costs.

 

“Digital skills are the foundation of Australia’s economic future,” said ACS Chief Executive Officer Josh Griggs.

 

“To compete globally, we need to ensure every worker, from frontline staff to the executive suite, has the capabilities to work with and lead digital transformation. If we close these gaps, Australia stands to unlock billions in economic growth, improve cyber resilience, and position itself as a global tech leader.

 

“Our plan is not just about fixing today’s problems; it is about creating a future-ready nation,“ Mr Griggs said.

 

Western Australia: Powering growth through digital capability

 

Western Australia contributes $8 billion to the national economy and is seeing a surge in innovation, particularly in the natural resources sector where robotics has transformed operations.

 

To keep pace with demand, the latest Digital Pulse report shows WA will need an additional 123,000 technology workers over the next decade. However, barriers such as work commitments, the high cost of training, and personal responsibilities continue to hold many people back from upskilling.

 

ACS WA Chair Jerome Chiew said: “ACS WA is working with local universities, TAFEs, and industry to grow the pipeline of digital talent, with a focus on alternative career pathways into tech, building cybersecurity capability, and expanding regional skills programs to ensure opportunities are spread right across the state.”

 

“Western Australia’s economy depends on a strong digital workforce. To meet future demand, we need to grow and diversify our tech talent. That’s why we’re working closely with ACS, education providers, and industry to create more pathways into digital careers and ensure Western Australians are ready for the opportunities ahead,” said Mr Chiew.

 

10 Actions to Strengthen Australia’s Tech Future

 

To build the pipeline of digital skills development and support a more innovative economy, ACS has identified ten recommended actions are:

 

Action 1 - Develop a national Sovereign AI Strategy: Create a clear, long-term vision for sovereign AI, supporting regulation, infrastructure, talent, and innovation.

 

Action 2 - Develop an innovation strategy: Use the upcoming R&D review to boost entrepreneurship, startups, and scaleups, addressing Australia’s lag in R&D and local innovation.

 

Action 3 - Government co-investment in scaleups: Bridge the “valley of death” in funding, especially for women and First Nations founders, through government-backed co-investment vehicles.

 

Action 4 - Greater incentives for R&D in AI and tech adoption by businesses: Encourage greater R&D in AI and promote wider tech adoption across businesses to address Australia’s AI and digital skills gap.

 

Action 5 - Executives take a digital skills health check: Require C-suite leaders to assess their digital skills using tools like ACS’s mySFIA to identify gaps, strengthen governance, and align with business strategy.

 

Action 6 - Promote entry-level pathways for cybersecurity professionals: Create more entry-level cyber roles to help fill the 54,000 additional cyber professionals Australia will need by 2030.

 

Action 7 - Fast track a national framework for tech skills: Prioritise and promote the national skills taxonomy, aligned with SFIA, to enable real-time visibility of workforce capabilities.

 

Action 8 - A national commitment to alternative tech pathways: Recognise industry certifications and VET qualifications alongside degrees. Adopt national hiring pledges like NSW’s 20% target for non-degree entry-level tech roles.

 

Action 9 - Implement an ‘earn while you learn’ scheme: Support mid-career workers with wage subsidies for reskilling in tech, shared by business and government.

 

Action 10 - Develop a sovereign system layer for government: Fund sovereign AI capabilities to ensure safe, locally relevant use of global models in public services.

 

The ACS Digital Pulse report continues to serve as an essential resource for policymakers, businesses, and educational institutions as they shape the future of Australia's digital economy. Copies of the report and full recommendations can be downloaded from www.acs.org.au/digitalpulse.

 

-ENDS-

Further information

Troy Steer

Director of Corporate Affairs and Public Policy

M – 0417 173 740

E – [email protected]

About ACS

ACS is the voice of Australia’s technology sector, representing over 41,000 technology professionals across all industries and across the nation.

 

Our members work in industry, education, government, and the community delivering the digital services that drive the nation and provide the high-skilled jobs of today and tomorrow.

 

ACS works to grow the technology sector while making sure IT professionals act ethically, responsibly, and in keeping with the best interests of not only their employers, but the wider community.

 

Through our network of branches in every state and Territory, our innovation labs, education programs and our history of over fifty years, ACS works to help all Australians be part of the nation’s highest growth sector. Visit www.acs.org.au for more information.

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