Australia’s digital crossroads: Are we keeping up with Global Leaders?

Australia’s digital transformation journey has made impressive progress in recent years, but the question remains: are we keeping pace with the world’s digital leaders, or are we at risk of falling behind?

Digital adoption in Australia is widespread

In 2025, more than 91% of Australians—over 23.3 million people—are active internet users, and social media penetration stands at 76%. The digital economy is now deeply embedded in daily life, with Australians spending an average of six hours and 20 minutes per week on social media and maintaining an average of 7.2 social media accounts per person.

Yet, despite these strong usage numbers, Australia’s digital competitiveness is still a work in progress. According to the IMD World Digital Competitiveness Ranking, Australia climbed six places in 2022 to reach 14th out of 63 countries, marking a significant improvement. However, our “future readiness”—the ability to embrace and leverage emerging technologies—lags behind, held back by factors such as business agility, entrepreneurial risk-taking, and cybersecurity preparedness. To close this gap, sustained investment in digital skills and international talent is critical.

The economic potential is enormous

Accelerating digitisation could add up to $90 billion to Australia’s economy and create up to 250,000 new jobs by the end of 2025. Previous studies have shown digital transformation contributed $45 billion to Australia’s GDP by 2021, increasing the national growth rate by 0.5% annually. In fact, 83% of jobs in Australia are expected to be transformed in the next three years, with more than half of those roles redeployed or reskilled to meet digital demands.

But there are real challenges. Australia faces a digital skills shortfall: By the end of 2025, an additional 6.5 million digital workers will be needed—a 79% increase from current levels. The most in-demand skills will include cloud computing, cybersecurity, large-scale data modelling, and software development. This skills gap is a major risk to our digital future and addressing it will require not just upskilling existing workers but also bringing new talent into the workforce.

Australian organisations are responding

In 2025, 65% of businesses plan to increase their technology spending, with a focus on reducing operational inefficiency (42%), replacing or upgrading legacy IT systems (36%), and improving customer experience (31%). However, technical debt and the complexity of legacy systems remain significant barriers to transformation.

Government investment is also accelerating

The Australian Government has allocated $12.9 billion across 110 major digital projects in 2025, with the majority of spending focused on healthcare, safety, and environmental resources. These projects are delivering tangible benefits, with 98.4% of Tier 1 and Tier 2 projects assessed as having medium-high or above delivery confidence in 2025, up from just 52.1% in 2024.

What does this mean for Australian businesses?

Digital maturity is now a strategic imperative. Organisations that invest in benchmarking their digital capabilities against global best practices, identify high-impact opportunities, and take a data-driven approach to transformation will be best positioned for growth.
A passive approach is no longer viable. The pace of digital acceleration means companies that fail to assess and enhance their digital maturity risk being left behind.
The competitive advantage lies in execution. Leveraging digital audits, optimising omnichannel experiences, and prioritising initiatives with the highest ROI can drive measurable improvements in revenue, customer satisfaction, and resilience.

Australia’s digital future is bright, but only if we address the skills gap, invest in future readiness, and maintain a relentless focus on digital maturity. Now is the time for Australia to close the gap and rise to world-best standards — those who lead will shape the next chapter of Australia’s economic story.

The question isn’t if your business should assess its digital maturity—it’s how soon you can start. Those who act now will be the ones leading their industries tomorrow. Contact us at info@fvadvisory.com

Article written by Susan Walsh.