This report analyzes the Participation and Equity Program's two objectives of reducing significantly the number of Australian students prematurely leaving full-time education and of fostering more equal education, and discusses strategies for achieving these objectives. Following a statement by the Minister of Education and Youth Affairs and an introduction, chapters are devoted to the following: state and commonwealth initiatives, selected statistics on participation and retention and participation and equity, basic principles and objectives of the Participation and Equity Program, proposed areas for action, operation of the program, administrative arrangements, and recommendations. A directory of School Commission offices in each state capital concludes the report. (Author/DCS)