This paper reports an analysis of IT software skills of some Victorian students on entry to first year tertiary studies in Business along with an analysis of their performance in “Office” type application assignments. The assumption that youth of today are IT literate on exit from school is questioned. Despite survey results suggesting a high level of skill in word processing and, to a lesser extent in spreadsheets, results on assignments in these areas may suggest students perceive their skills as being better than their actual performance. In crowded curricula, where there is pressure to include ever more material at the expense of more traditional topics, word processing and spreadsheet applications are sometimes suggested for removal. The study reported here finds little evidence that these topics should be removed from the curriculum at this stage.