Opinion: Australia's economic growth needs digital skills reform
Australian Computer Society (ACS) releases nine-point national plan to reform digital skills and boost research commercialisation
Calls for a National Innovation Strategy, Digital Skills Passport, and co-investment models to drive growth
Leaders warn Australia risks falling behind without urgent reform in skills development and commercialisation pathways
Special Report: With the federal election taking place this Saturday, the Australian Computer Society has released a call to action for the incoming government: make digital skills and innovation the backbone of Australia's economic future or risk falling behind globally.
The Australian Computer Society (ACS) has set out a nine-point blueprint focused on two pillars, Skills and Commercialisation, designed to spark a more resilient, productive, and globally competitive economy.
Despite the rapid pace of technological change, Australia's education and skills systems remain largely geared toward an industrial era economy. A recent paper (a global survey conducted by ManPowerGroup across 42 countries interviewing more than 40,400 employers) found that 76 per cent of Australian employers are struggling to fill roles due to persistent skills mismatches.
The ACS is urging the next government to:
Fast track the development of a National Skills Taxonomy
Invest in a National Digital Skills Passport to formally recognise lifelong and informal learning
Expand professional skills frameworks like SFIA to enable rapid upskilling in critical areas like cybersecurity
Harmonise pathways between the VET and higher education sectors to create stackable, job ready qualifications
Melinda Cilento, CEO of CEDA, sounded a stark warning: 'We should be really worried about the increasing number of boys who are not finishing school in this country, and about an education system they do not find relevant, engaging, or empowering.'
Cherie Diaz, Executive Director of Education Innovation at Western Sydney University, added: 'We need to build a common language between educators, technology providers, and employers. Strategic partnerships are key.'
Innovation: From world class research to world class outcomes
While Australia punches above its weight in research, producing over three per cent of the world's research output, it remains a laggard when it comes to commercialisation, often losing groundbreaking ideas to overseas markets.
Key ACS recommendations for the next government include:
Prioritising reform through the upcoming National R&D Review
Developing a long term National Innovation Strategy to survive beyond political cycles
Expanding sustainable co-investment models to better share public and private sector risk
Leveraging government procurement to actively stimulate domestic innovation
Phil Morle from Main Sequence Ventures captured the dilemma: 'Time and again, companies move offshore because they can't raise the bigger rounds needed for global scaling here.'
Meanwhile, Jane O'Dwyer, CEO of Cooperative Research Australia, noted that regulatory burdens have increasingly stifled collaborative success: 'We've over regulated innovation and it's hurting our ability to create another Cochlear.'
Why this matters
Josh Griggs, ACS Chief Executive Officer, stated the time for piecemeal reform is over, saying: 'Australia has the ingenuity, the research capability, and the talent to thrive in today's digital economy. What we need now is a unified, national approach to developing skills and translating innovation into impact. These are not side issues – they are central to our future prosperity.
'We're calling for government and leaders to connect the dots: from digital skills, lifelong learning, and alternative pathways to venture capital and commercialisation. We need to build an economy that's not only productive and resilient, but also globally competitive. The talent is here. The ambition is here. Now we need the support and systems that match that vision and strategy.'
ACS President Helen McHugh, MACS (Snr) CP, added 'Australia is at a crossroads. We have world-class researchers, bold entrepreneurs, and a highly educated workforce – but they're being held back by outdated systems and fragmented policy.'
'The next government must embrace a bold, forward-thinking agenda that invests in people and ideas. That means recognising all forms of learning, supporting pathways between education and work, and creating the conditions for innovation to thrive here – not just overseas.'
The views, information, or opinions expressed in the interviews in this article are solely those of the author and do not represent the views of Stockhead.
This article was developed in collaboration with The Australian Computer Society, a Stockhead advertiser at the time of publishing.
Stockhead does not provide, endorse or otherwise assume responsibility for any financial advice contained in this article.
Originally published as Election 2025: ACS urges next government to unlock Australia's digital future
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