This paper examines leadership in Australia's vocational education and training (VET) sector. VET leaders make a vital and growing contribution to learners, industry and society, yet research on their work is limited. This has direct implications for ensuring leadership is most effective, and for framing evidence-based capacity development. The current research draws together reviews of complex and often competing contexts, analyses of prior research, and results from a national survey of 327 practising VET leaders. Analysis of what VET leaders report doing in their jobs suggests that while they are attuned to the education-focused demands of their roles, they now need new capabilities to respond to internal and external developments. To identify the powerful forces which shape leadership, the study established criteria seen to mark out effective performance in each role. It highlighted a set of indicators identified by VET leaders as those most important in making judgements about the effective delivery of each role. Identifying indicators of effective performance is important, as it is these which, ideally, drive leaders' aspirations and behaviours. The future capacity of VET in Australia will be underpinned by the capability and regeneration of its leadership. New programmes need to focus on concrete "change management" skills, working through complex real-world problems and leading change in ambiguous environments. The more authentic and active modes of learning were advocated by VET leaders, who expressed an overwhelming preference for practice-based and self-managed, as opposed to formal, forms of professional learning.