The Australian Council for Educational Research (ACER) is an independent, national, educational research and development agency that was established in 1930 with a grant from the Carnegie Corporation (United States). ACER's mission is to provide high quality educational research, services, and materials to improve educational policy and practice. This annual report for 1996-97 begins with ACER's Role and Structure, presenting ACER's guiding values, commitments, and goals, and discussing the origin and development of ACER, professional services, and organization and staffing. The report's other sections are: "Highlights of the Year for ACER" (Research and Development; Organizational Developments; Staff Activities); "Director's Comment: Politicizing the Standards Debate";"Measurement Division"; "Policy Research Division"; "International Development Division"; "ACER Press" (Product Development; Publishing; Marketing and Customer Service); "Corporate Services Division" (The Cunningham Library; Computer Services; Personnel Services; Equal Opportunity Committee); "Staff Publications and Professional Activities" (Staff Publications; Staff Professional Activities outside ACER); "Financial Report" (Trends and Prospects; Directors' Report; Auditor's Report); "Members of ACER Council"; "Members of ACER Staff"; and "Report from the Institutes of Educational Research." (BT)