The developments that have occurred in Australia s a result of both federal and state initiative are traced, especially those which occurred during the 1980s. Initially, constitutional arrangements, as they relate to education, are briefly described. A brief overview of recent policy developments is then provided. Some explanatory comments are offered, based on how the developments relate to broader social goals; the developments are then considered in the context of federal/state relations. The final section is devoted to outlining lessons from the Australian experience and some tentative suggestions on future directions are stated. (25 references) (SI)