The Bigger Picture: Why Digital Literacy Matters and How It Fits Into Australia’s Shift Toward a Skills First Future

TL;DR

Digital literacy has become a key consideration in learner suitability not because of a single regulatory change, but because Australia is undergoing a broader shift toward a skills-first system. This includes government efforts to build a common skills language, a National Skills Taxonomy (NST), and more flexible pathways that recognise skills over qualifications.

Within this context, Digital Literacy is increasingly viewed as a foundational capability. The Standards for RTOs 2025 reflect this broader shift by including digital literacy as part of LLND considerations.

Course Ready and Digital Robot simply help RTOs think through different parts of this evolving landscape.

This article provides context — the “why” behind the environment that led to digital literacy being elevated in LLND and why tools such as Digital Profiler exist.

1. The Regulatory Environment Didn’t Change in Isolation

The inclusion of digital literacy within LLND in the Standards for RTOs 2025 isn’t a standalone development. It’s part of a bigger national and global trend.

Australia — like every advanced economy — is responding to:

rapid digital transformation
increasing need for lifelong upskilling
workers changing occupations more often
employers prioritising skills over qualifications
technology becoming embedded in almost every job

The NST paper released by Jobs and Skills Australia (JSA) makes the direction clear:

Australia needs a “common skills language” to help individuals move between learning and work more easily, and to support a more adaptable, digitally capable workforce.

When the workforce changes, the training system naturally shifts with it.

So the 2025 Standards are not an isolated reform — they’re a reflection of a larger skills-first shift already underway across government, industry and the labour market.

2. Digital Literacy Is Now a Baseline Capability, Not a Specialist Skill

Across the NST paper, digital capability is positioned as a critical workforce requirement — not just for tech roles, but across care, business, trades, and service sectors.

The paper notes:

Digital transformation is reshaping almost every job.
The economy increasingly relies on workers who can navigate digital tools.
Workers will need to upskill repeatedly across their careers.

This aligns with the global recognition that digital literacy is now a foundational skill, similar to reading and numeracy.

That’s why the Standards for RTOs 2025 include digital literacy within LLND — not because RTOs must produce “digital experts,” but because digital capability underpins almost all training participation and many workplace tasks.

3. A Skills First System Means Understanding Learner Capability, Not Just Access

The NST paper outlines a national shift from qualification-first to skills-first, where:

individuals build skills gradually
skills are recognised regardless of where they were learned
workers move in and out of occupations more often
training needs to reflect rapidly evolving digital expectations

In this environment, RTOs need clearer insight into what a learner can do, not just whether they have access to a course.

Digital literacy becomes a natural part of this conversation because:

training is increasingly digital
assessment is increasingly digital
workplaces are increasingly digital

RTOs aren’t being asked to “teach digital literacy” in every course.

They’re being asked to consider digital literacy when determining whether a learner can meaningfully participate.

Digital Robot and the Digital Profiler tool help RTOs do that in a structured, transparent way.

4. The National Skills Taxonomy (NST) and the Future of Skills

The NST project aims to create a unified, interoperable skills language that can:

map skills across qualifications and jobs
support mobility between VET and higher education
help employers understand what people can actually do
reduce duplication and inconsistency across the tertiary system

This is highly relevant for RTOs because:

Digital literacy is one of the most consistently referenced “core skills” across emerging industries.
A common skills language will likely recognise digital skills as foundational and portable.
Training products will increasingly reflect explicit skill expectations, including digital ones.

Digital Profiler links neatly to this future direction because it already uses a structured capability framework (DigComp).

While this is not a requirement, it positions RTOs well for a system where:

skills are defined consistently
learner capability is visible and comparable
digital skills are part of a national language

This is part of the “why” behind the movement, not a compliance mandate.

5. Why Digital Literacy Appears in LLND in the 2025 Standards

When seen through the skills-first lens, the Standards’ inclusion of digital literacy becomes clearer.

The Standards for RTOs 2025 expect RTOs to:

consider learner capability before enrolment
support learners to make informed decisions
identify where supports may assist
ensure learners can meaningfully participate in training

Digital literacy naturally fits into this because:

learners increasingly engage with digital assessments
learning materials are digital
administrative processes are digital
workplaces expect basic digital competence

So even though the Standards don't require Digital Robot or Digital Profiler specifically, they do reflect the broader expectation that RTOs take digital literacy seriously as part of their LLND considerations.

6. What This Means for RTOs Today (and Tomorrow)

RTOs don’t need to predict the future of the tertiary system — but understanding the direction helps them stay aligned.

Today:

Digital literacy is part of LLND considerations.

Near future:

Training products may adopt clearer skill-level descriptions as NST work progresses.

Longer-term:

A harmonised tertiary ecosystem may rely on shared skills definitions — including digital ones — to improve learner mobility and workforce outcomes.

The tools you choose today become part of a long-term skills ecosystem.

Digital Robot supports this by:

giving RTOs a structured way to consider digital capability
providing transparent information for learners
documenting reasoning behind suitability
aligning naturally with the direction of the NST and skills-first frameworks

The Standards remain outcomes-based, and RTOs may choose any method that helps them meet those outcomes.

In Summary

Digital literacy in LLND is part of a broader national and global shift, not an isolated regulatory change.
Government is moving toward a skills-first system where capabilities, including digital ones, matter as much as qualifications.
The NST aims to create a common skills language, and digital capability is central to this vision.
Course Ready and Digital Robot help RTOs work within this evolving landscape.
Digital Robot offers one structured, transparent way to consider digital literacy.
Understanding this bigger picture helps RTOs future-proof their learner support practices.