This paper describes major characteristics of Australia and its education system, including changes in the structure of higher education as former Colleges of Advanced Education, where most teacher education in Australia had been conducted, amalgamated with existing universities or became new universities. Preservice teacher education models are described, including integrated, concurrent, and end-on models. Elements of restructuring and innovation in Australian teacher education are discussed, focusing on: teacher supply and demand; teacher quality; formation of the New South Wales Teacher Education Council; formation of the Australian Council of Deans of Education; reviews conducted by the Australia Department of Employment, Education & Training; faculty reviews; quality audits; accreditation of teacher education courses; and licensing or registration. The paper concludes that increasing pressures are being placed on teacher education due to a perceived oversupply of teachers, the low status of teacher education within universities, and a crescendo of external review and criticism. The way forward seems to include closer partnerships among universities, schools, education systems, unions, and teacher professional organizations, and balancing participation in the political process with the need to retain a degree of distance and autonomy. Appendixes include a list of Australian universities and a list of Australian professional educational associations and their 1995 conferences. (Contains 28 references.) (JDD)