This paper examines the internationalization of postsecondary education in Australia and Canada. The author discusses the contextual similarities and differences between the two countries, the shifting rationale "from aid to trade" behind Australia's internationalization attempts and some of the reasons for Australia's success. Australia's experiences offer Canada important lessons in the areas of immigration policies, quality assurance, student safety, support for international students, mobility opportunities for domestic students and internationalization of the curriculum at home. The author also discusses challenges that both countries will face as they attempt to maintain or enhance their internationalization efforts in the future.