Hiring new graduates is a cost-effective method of recruiting high-potential talent into organizations. Despite recent focus on graduate employability in the Australian higher education (HE) sector, a discrepancy remains between employer expectations of graduate work readiness (WR), and graduate perceptions of preparedness to commence professional work. This has implications for curriculum development, including work-integrated learning (WIL) programs that aim to improve WR of students ensuring they have the necessary skills and attributes required for work. What comprises WR skills and attributes, however, has been conceptualized differently in the literature. This systematic review aimed to address the lack of consistent conceptualization of WR, and the tools used to assess WR, in the Australian HE sector. A systematic review of five databases returned 138 articles based on the inclusion criteria, of which 16 met eligibility for review. The included studies were synthesized to compare conceptualizations and assessment of WR. Findings confirmed differences in conceptualization of WR and the majority of studies adopted a multidimensional measurement approach, comprising discipline-specific and generic skills. We discuss implications of varied conceptualizations of WR and assessment of WIL activities to improve WR in the higher education context.