Practices and policies regarding graded assessment in vocational education and training (VET) in Australia were examined. Data were collected through a literature review; focus groups involving approximately 120 stakeholders in 5 states; interviews with 49 representatives of registered training organizations (RTOs); and surveys of RTOs, students, and peak bodies. Despite the existence of significant initiatives related to graded assessment in VET, support for graded assessment was not universal among stakeholders. A large percentage of respondents deemed consistency in graded assessment across national qualifications the most important consideration. Few policies existed to assist RTOs in valid, consistent implementation of graded assessment. Even where policy guidelines existed, assessment methods varied. Lack of transparency in reporting was another major concern. The researchers proposed a framework for graded assessment consisting of the following tiers: (1) at the national level, a set of overarching principles providing guidance on what should be graded and how; (2) at the state level, policy or guideline development consistent with national principles; and (3) at the RTO level, autonomy to develop local policies, procedures, and guidelines, albeit within national/state principles and guidelines. (The bibliography lists 49 references. The following items are appended: four graded assessment models and approaches; the survey instruments; and a list of research participants.) (MN)