Significant attention has been paid to the forms and practices of effective school-university partnerships in recent times as they are commonly seen as a key element to improve the quality of teacher education programs and thus graduate teachers. However, analysis of the effectiveness of such partnerships has not been so evident. This article critically reviews the notion of partnership and its practice in Australia, then presents a conceptual lens via activity theory through which to analyse opportunities and challenges, particularly with respect to school-university partnerships, within the current climate. A Professional Learning Partners Program in a specific context in Australia is also described to present one initiative that aims to develop an effective partnership between school and university.