A new report from the Australian Computer Society (ACS) has issued a warning to Aussie businesses of all sizes, especially the small ones: you’re going to need a whole lot more tech talent if you want to survive the digital decade ahead.

The Digital Pulse 2025 report, produced with Deloitte Access Economics, forecasts that Australia will need an extra 152,000 tech workers by 2030, growing the tech workforce to over 1.1 million roles. However, it’s not just the tech sector under pressure, every industry is in the firing line.

“Technology is increasingly used across all sectors of the economy—not just in tech businesses,” the report says.
“The need for digital capability is now universal.”

“Small businesses are particularly vulnerable”

Small business owners, already stretched thin, are especially exposed to digital disruption. The report pulls no punches:

“Small businesses are particularly vulnerable to being left behind in the digital transition. They are less likely to have in-house IT support, and less likely to have the capacity to attract or afford tech talent.”

In other words, the local café adopting a point-of-sale upgrade or the tradie learning to quote via an app now face the same digital pressures as big corporates, but with fewer resources to meet them.

A skills stocktake that’s falling short

The report includes a digital skills stocktake across four capability tiers: basic, intermediate, advanced, and expert. The findings aren’t pretty.

Only 5 per cent of Australians demonstrate expert-level digital capability, while more than 60 per cent sit below even the intermediate level. Shockingly, one in five Australians lacks even basic digital skills— unable to navigate sumple tools such as spreadsheets or cloud-based solutions.

In plain English? Many workers, and their employers, don’t yet have the tools or confidence to thrive in today’s tech-driven economy.

“Digital literacy is a key enabler of participation in modern workplaces,” the report stresses.

“Basic proficiency in using digital tools and systems should be a foundational skill for all workers.”

Josh Griggs: “A digital workforce challenge we cannot ignore”

ACS CEO Josh Griggs says the country is at a pivotal moment, and small businesses must be part of the solution.

“Australia faces a digital workforce challenge we cannot ignore,” he warns. “We must work together—governments, educators, businesses and the tech sector—to address the shortfalls and provide the pathways that support all Australians to thrive in a digital world.”

Griggs is quick to point out that this isn’t about turning every worker into a software engineer. It’s about lifting the digital baseline right across the economy.

“The demand for digital skills extends beyond the tech workforce. We must enable the whole economy to participate in digital transformation.”

For small business owners, this means taking a good hard look at your team, and your own skills, and asking: are we really ready for what’s coming?

Where business is falling behind

The report suggests that one of the major problems is  we’re not producing enough digitally capable workers through the education system or through alternative pathways.

Tech education enrolments are flatlining. Many Australians, especially women and those from regional or diverse backgrounds, still face barriers to entering or progressing in the tech workforce. Women account for just 29 per cent of tech roles, and few businesses are actively supporting alternative entry points like microcredentials or vocational training.

The report also reveals that non-traditional learning pathways, such as short courses, on-the-job upskilling and microcredentials, are underutilised. Despite being well-suited to small business environments where time and budgets are tight.

“Lifelong learning needs to become a core principle in Australia’s workforce development,” the report says.

“Non-traditional pathways—including microcredentials and on-the-job learning—must be supported and recognised.”

It’s a wake-up call for business owners who can’t afford to send staff off to full-time degrees, but could easily fit flexible learning around existing work.

AI and cybersecurity: hot zones to watch

Two areas stand out as urgent priorities in the report: cybersecurity and artificial intelligence.

With cyber threats rising in both frequency and sophistication, even the smallest businesses need to have some basic cyber smarts on deck. From password policies to customer data protection, it’s no longer just a problem for the IT guy.

AI, meanwhile, is moving from buzzword to business essential. More small businesses are embracing tools like ChatGPT, Canva AI, or automation in accounting platforms. Yet few understand the risks or opportunities involved.

The report urges business owners to think beyond just playing with the tools to prioritise developing real fluency in how AI works, what it can (and can’t) do, and how to use it responsibly.

“The rise of AI has brought new urgency to the skills conversation,” says Griggs. “There is a growing need for AI fluency across all sectors of the economy.”

How to get started right now

So what does this all mean for your average Aussie small business? It’s time to stop treating digital skills as optional and start weaving them into your operations, hiring, and training.

If you’re a business owner, the first step is upskilling yourself. Whether that’s learning how to use cloud accounting software, understanding basic data analytics, or brushing up on cyber hygiene. Next, look at your team. Can they comfortably use the tools your business relies on? Are they keeping up with changes in tech?

Hiring younger or digitally fluent staff, even in entry-level roles, can bring fresh skills to your business. And investing in short-form training, through online platforms, free government programs, or local workshops, can make a massive difference without blowing your budget.

The ACS report is clear: the businesses that act now will be the ones that thrive.

“All businesses—particularly SMEs—must be supported to develop their own digital capabilities.”

The digital economy isn’t coming; it’s already here.  “Without a concerted effort, Australia’s digital workforce challenge will only intensify,” says the report.

So it’s time to lean in and build on or develop the digital skills your business needs to thrive.

Want more? Get our newsletter delivered straight to your inbox!  Follow Business Builders on Facebook , X , Instagram , and LinkedIn.