15 April 2025 – Sydney

 

The Australian Computer Society (ACS) is calling on the next federal government to take urgent, coordinated action on digital skills reform and research commercialisation, warning Australia’s economic future depends on how well the nation modernises the workforce and innovation landscape.

 

At the ACS 2025 Election Forum held in Sydney on 8 April, leaders from industry, education, and venture capital highlighted the growing urgency of two national priorities: developing a modern skills recognition system and transforming research into commercial success.

 

These themes are further expanded in ACS’s newly released election position paper, which sets out the following clear, practical recommendations for the next government.

 

A national blueprint for action

The ACS’s consolidated election position paper outlines nine core recommendations for the next government across two major pillars: skills and commercialisation.

 

1.       Develop a National Innovation Strategy that is not subject to election cycles

2.       Leverage public procurement to stimulate innovation and support Australian businesses

3.       Treat the national R&D review as a priority reform process

4.       Enhance CRC business models to foster enduring collaboration across sectors

5.       Support scalable, sustainable co-investment models between industry and universities

6.       Fast-track the development of a National Skills Taxonomy

7.       Invest in lifelong learning and fast-track a National Digital Skills Passport to recognise learning

8.       Fast-track harmonisation between VET and higher education

9.       Expand the use of skills frameworks like SFIA and formalise skills-based professionalisation

 

ACS President Helen McHugh, MACS (Snr) CP, 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.”

 

Skills: From outdated systems to a future-ready workforce

Australia’s current skills and qualifications system is still geared to the industrial era, leaving employers and workers without the agility to keep pace with technology and workplace change.

 

A recent paper revealed nearly 76% of Australian employers are struggling to fill roles due to persistent skills mismatches — a problem compounded by fragmented frameworks, poor recognition of informal learning, and limited pathways between vocational and higher education.

 

“We should be really worried about the increasing number of boys who are not finishing school in this country, and we should be really worried about an education system which they do not think is relevant, engaging and empowering.” said Melinda Cilento, CEO of CEDA.

 

The ACS is calling on the next government to fast-track the National Skills Taxonomy, invest in a Digital Skills Passport, and expand professionalisation frameworks like SFIA — especially in high-urgency areas like cybersecurity.

 

“We need to continue to leverage what’s in place and working, continue to build those strategic partnerships between education providers, technology providers, and employers, and to build a common language,” said Cherie Diaz, Executive Director of Education Innovation at Western Sydney University.

 

The paper also urges harmonisation between the VET and higher education sectors, calling for stackable, job-ready qualifications and lifelong learning pathways.

 

Innovation: A global leader in research, a laggard in results

Despite producing over 3% of the world’s research, Australia still struggles to convert new knowledge into market-ready products and services — a phenomenon known as the ‘valley of death.’ ACS’s paper identifies structural fragmentation, cultural risk-aversion, and a lack of mid-sized enterprises as key reasons why promising Australian ideas often end up commercialised overseas.

 

“There comes a time when funding rounds are getting bigger and bigger, and to do the next thing you’ve got to raise more money to take more risk and work with a bigger global customer base,” said Phil Morle of Main Sequence Ventures. “So you look around and you don't find that money in Australia, but you do find it overseas and you move the whole company. This happens time and time again.”

 

The position paper calls for the next government to act on the forthcoming National R&D Review, develop a long-term innovation strategy, and strengthen co-investment models that allow public and private capital to share risk and reinvest returns.

 

Jane O’Dwyer, CEO of Cooperative Research Australia, noted that regulatory changes have made it harder to replicate past success stories like Cochlear: “The regulatory changes we've made over 30 years mean that it couldn't have had the three CRCs that participated in. Of course, it might not need it now – things happen faster – but we've over-regulated that space.”

 

Government procurement, too, is flagged as a powerful but underused lever. The ACS paper recommends using federal purchasing power to stimulate innovation and support Australian businesses, a move that could have greater economic impact than many standalone funding programs.

 

For the full list of policy recommendations and a summary of the forum, visit: https://www.acs.org.au/campaign/2025-election-forum.html

 

-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 47,000 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.