A conceptual framework for school-based vocational education and training (VET) in Australia is based on a United States model. It implies VET has purposes beyond equipping young people with skills. Global themes in VET development are government use of VET as an economic and social policy tool to ensure skilled workforces; provision of VET through partnerships; and a move to locate responsibility for VET provision away from a central agency. These three factors impact on VET provision: British heritage, the federalist model that placed responsibility for education with the states, and a national view that labor and capital must be competitive in a global economy. VET strengths are: a recognized national agenda linking national qualifications and skill standards and senior secondary schools; a national commitment to school-based education; significant organizational changes; and new delivery arrangements in schools. Weaknesses are: multiple objectives; problematic application of quality and benchmark concepts; limited entry-level vocational concepts and qualifications; participation and retention issues; ongoing funding and resourcing responsibilities; lack of flexibility by central policy authorities; lack of appropriate performance measures; employer participation; and supply of VET teachers. (About one-third of part 1 of the document is a literature review focusing on a rationale for promoting VET in schools, issues relating to design and delivery of VET-in-Schools programs, implementation at system and school levels, relationships with employers, implementation issues at the student level, and perceived benefits. Part 2 elaborates on the major findings and issues presented in part 1 and provides the underpinning detail and research upon which the findings and recommendations of part 1 are based. (Contains 90 references.) (YLB)