Since the "Kangan Report" (1974), literacy and numeracy (L&N) issues have become an integral component of policy development in Australia's vocational education and training (VET) sector. Debate in the literature is based on competing discourses: functional-economic and social practice. These discourses and globalization of the economy have had a significant impact on shaping L&N policy, resulting in a proliferation of policy initiatives. L&N have moved from being marginalized to being a mainstream component of policy. Through initiatives such as competition in VET, user choice, and training packages, the training reform agenda has led to new roles for VET teachers. Impact of low levels of L&N on VET participation is largely unmeasured and based on anecdotal evidence. A lack of measures or measurement systems limits the ability to quantify it. Numerous approaches effectively support the L&N component of learner activities, but perhaps the most critical is early identification of skill levels. Professional development and teacher education programs have a role in developing L&N support mechanisms and need to focus on recognition of needs, cross-cultural training, technology use, and enhancement of research skills. An effective balance between a focus on the L&N specialist and the VET content specialist is required in the overall approach. Future research directions include workplace insights, policy examination, and participation conceptualization and measurement. (Contains 170 references.) (YLB)