The State of Cyber Security in Australia: A 2025 Market Update

The Australian cyber security market in 2025 is under intense pressure, but also brimming with potential. A convergence of regulatory shifts, evolving threats, and deepening digital transformation is accelerating demand for cyber professionals across nearly every sector. While certain pockets of the market slowed during the federal election period, a renewed sense of urgency is taking hold as organisations push forward on critical infrastructure and data protection programs.

We sat down with Matt Kiss, Talent Consultant at e2 Cyber, to unpack what’s really going on in the industry, where the opportunities lie, and how professionals and businesses alike can navigate the changing tides of cyber security.

A Market That Refuses to Stand Still

Cyber security in Australia has been on a consistent growth trajectory. In the the most recent ASD report, the Australian Cyber Security Centre (ACSC) recorded over 87,400 reported cyber incidents, with an average cost of more than $49,600 for small businesses and up to $63,600 for large businesses (ACSC, 2024).

This consistency in attacks has increased awareness at the executive level, pushing organisations to reprioritise their cyber strategies. Still, the market has not been without friction.

“There was a slight lull in activity during the federal election,” says Matt. “We saw delays in hiring, especially in the government sector. But confidence is returning now. From late July into August, we expect things to ramp back up, especially across Canberra and federal agencies.”

e2 Cyber’s own market insights reflect this pattern, and the dip in hiring activity was temporary. With budget resets underway and key programs restarting, the second half of 2025 is likely to see renewed demand, especially in governance, technical architecture, and threat intelligence.

Changing Expectations and Strategic Hiring

The biggest change in the market is not just volume, but intent. Companies are shifting from reactive threat response to proactive, long-term investment in cyber resilience.

“Organisations aren’t just ticking compliance boxes anymore, they’re hiring for strategy. That includes risk leaders, GRC specialists, architects, and advisors who can help align cyber priorities with broader business goals.”

This demand is strongest in sectors dealing with highly regulated environments or sensitive data. Government departments, financial services, healthcare providers, and education institutions are particularly active. They’re hiring across a spectrum of roles, from security operations and incident response to policy and privacy advisory positions.

In this more mature environment, there is also increasing pressure on cyber professionals to communicate effectively with non-technical stakeholders. As the gap between technical operations and executive decision-making closes, those who can translate risk into business language are rising in demand.

Future-Proofing Organisations and the Cyber Roles Driving It

The last year has marked a significant turning point in how organisations think about cyber. Threats are becoming more complex and less predictable, and businesses are responding by building depth into their teams and infrastructure.

“There’s been a strong push towards automation and predictive analytics,” Matt says. “Cyber professionals are now tasked with not just protecting systems, but with building intelligence into the way those systems behave.”

AI is one of the key factors behind this change. On one hand, attackers are using generative AI to write better phishing emails, mimic speech, and evade detection. On the other, defenders are using AI-powered tools to automate detection, classify threats, and trigger real-time responses.

The professionals at the centre of this evolution are those who can operate between tools, technology, and strategy. Skills in cloud-native security, Zero Trust design, and threat intelligence are growing rapidly. Yet it’s the ability to embed these practices into broader governance and resilience frameworks that makes a cyber expert indispensable.

Market Trends: Opportunity and Risk for Professionals

Matt is clear on one point: the opportunity in cyber security is vast, but not without risk.

“There’s a lot of noise in the market. People are chasing new tech, and that’s fine, but the fundamentals still matter. The real pitfall is over-reliance on tools without a strategy.”

Some of the most promising trends professionals should keep an eye on include:

• Growing demand for Zero Trust architecture skills, particularly in large enterprises.
• Increased focus on cloud-native defence, especially in multi-cloud and hybrid environments.
• Strong momentum behind threat-led defence models, including purple teaming and adversary simulation.
• Rising investment in ethical hacking and red-teaming, particularly among critical infrastructure providers.

However, there are risks too. Burnout remains a major issue. According to the AustCyber Competitiveness Plan, a vast number of cyber professionals in Australia report moderate to high stress levels, often driven by unrealistic expectations and under-resourced teams.

“People leave when they don’t feel supported,” Matt says. “That’s especially true in high-pressure SOC environments. Retention is going to be just as important as recruitment in the coming years.”

Certification, Learning and Staying Relevant

As cyber threats evolve, so must the professionals defending against them. That’s why continuous education is a cornerstone of career success in this industry.

“Certifications like CISSP, CISM, and CRISC are still valuable. Especially for cyber leadership jobs or GRC analyst roles,” according to Matt. “But what really matters is ongoing learning. Tools change. Threats change. Your skills need to change with them.”

Government and defence employers also place a high premium on certifications such as IRAP and experience with the ASD Essential Eight. Meanwhile, micro-credentials in niche areas like operational technology security, secure coding, and AI ethics are gaining popularity.

He also encourages professionals to make space for informal learning, whether through industry events, peer mentoring, or participation in local cyber communities. Cyber events like BSides, and large-scale conferences like CyberCon, remain key touchpoints for staying connected and informed.

Privacy-Driven Growth and Regulatory Pressure

The regulatory environment in Australia is one of the defining forces in the cyber market. Following major breaches from 2022 until today, there has been sustained pressure on the government to tighten legislation and improve enforcement.

The 2024 Privacy Act Review is driving fundamental change in how businesses think about data protection. Proposals include significantly increased penalties, a broader definition of personal information, and enhanced notification requirements.

“These changes are reshaping the market,” he says. “Organisations are building privacy teams, embedding risk assessments into project design, and hiring professionals who understand both security and compliance.”

Cyber and privacy roles are no longer distinct. In fact, many employers now expect candidates to have a working knowledge of both. This is creating hybrid opportunities in areas like data governance, privacy engineering, and cyber risk management.

Australia’s Unique Position Globally

While global themes such as ransomware, supply chain attacks, and critical infrastructure protection are consistent worldwide, Australia’s cyber environment carries distinct traits.

“Regulation is a big differentiator,” says Matt. “Australian organisations face tighter controls and higher expectations, particularly in sectors tied to national interest.”

Australia’s adoption of the Security of Critical Infrastructure (SOCI) Act and the Essential Eight framework gives it one of the more prescriptive cyber standards globally. This helps raise the baseline, but it also puts pressure on organisations to act quickly and decisively.

This also has implications for the workforce. Professionals in Australia need to be familiar with local legislation, threat reports from the ACSC, and governance requirements that align with the federal government’s protective security policy framework.

The Role of Contractors in a Changing Market

Contractors continue to be essential to the cyber security workforce, particularly in delivering major transformation programs. Their ability to hit the ground running is especially useful when timelines are tight or specialised skills are required.

“Contractors give organisations flexibility and speed,” he explains. “But they’re not a replacement for long-term capability. The best outcomes come when contractors work alongside well-supported internal teams.”

In recent years, there has been an uptick in contract-to-permanent transitions, as employers try to secure critical skills on a longer-term basis. This trend is especially visible in Canberra, where contract roles often evolve into key permanent positions for those aligned with public sector missions.

Small Business and the Fight for Talent

With cyber security salaries climbing, many small businesses worry they can’t compete for top-tier talent. However, Matt is optimistic about the options available to them.

“You don’t have to match Big Four salaries to hire great people,” “What matters more is the experience you offer. Flexibility, purpose-driven work, remote options, and career development all carry weight.”

Smaller organisations often have flatter hierarchies, which gives cyber professionals more responsibility and visibility. For many mid-career candidates, that autonomy is worth more than a pay bump.

Investing in training and mentoring is another way small businesses can differentiate themselves. Candidates are increasingly looking for employers who will support their growth, not just fill a seat.

In Conclusion: What It Means for the Industry

The cyber security market in Australia is dynamic and demanding. Threats are increasing in volume and sophistication. Regulation is tightening. Talent is in short supply. Yet these pressures are also driving innovation and long-term thinking.

Organisations are investing in cyber not just because they have to, but because they understand what’s at stake. Professionals are stepping up, too, developing new skills and shifting from reactive defence to strategic leadership.

The Australian market is not simply growing. It is maturing, and that maturity will define the industry’s next chapter.

Final Thoughts

As we throttle through the second half of 2025, cyber security will remain a cornerstone of Australia’s digital future. For professionals, the opportunities are vast, but only if they stay curious, capable, and collaborative. For organisations, success will depend not only on the tools they buy or the frameworks they adopt, but on the people they trust to make it all work.

Matt Kiss summed it up well: “Cyber isn’t a niche anymore. It’s woven into every part of a business. The professionals who thrive are the ones who understand that, and who never stop learning.”

The team at e2 Cyber will continue to support both professionals and employers as the market evolves. If you're hiring, looking for your next role, or trying to understand where your cyber journey could take you, we’re here to help.