A definition by “Australian skills Quality Authority”-
Recognition of prior learning (RPL) is a process that assesses your competency—acquired through formal and informal learning—to determine if you meet the requirements for a unit of study. (https://www.asqa.gov.au/faqs/provider-closures-students/what-rpl )
That means if you have the experience you may apply for a qualification-
Example 1: If you are working in a restaurant as a chef and you are proficient in all aspects of food preparation, but you don’t have any formal qualification, then you can apply for a certificate III/ IV in Commercial Cookery.
Example 2: If you are a painter and applying paint, pigment, colour or other medium to a solid surface on a regular basis and in a professional way, but you want to be recognised as a professional painter then you can convert your experience into qualification (such as you may apply for a Certificate III in Painting and Decorating).
Example 3: If you are working as a team leader, such as in Coles or Woolworths or Aldi etc, and know how to lead the team or an organisation effectively and doing so for long then you may apply for a qualification (ex-Diploma of Leadership and Management) based on your experience.