The contribution of competency-based training (CBT) to Australia's vocational education and training (VET) sector was examined through three data collection activities: review of Australian and international literature on VET and CBT; telephone survey of a sample of training managers of 195 companies across Australia; and 8 intensive case studies of competency-based VET programs throughout Australia. According to the literature review, the contribution of CBT to outcomes in VET is strongly related to the following: how competency is conceived; flexibility in the development and use of national competency standards; and processes and structures of training provision. The national telephone survey indicated that CBT's success relies on the following three factors: (1) specific skills, on-the-job learning and assessment, and recognized training with formal acknowledgment of skills in a qualifications structure; (2) enterprise development in adapting to and managing changing workplace realities; and (3) workplace and industry accountability. The case studies showed that CBT's outcomes depend on how competency is conceived and how the training process is defined. (The report contains 115 references. Appendixes, constituting approximately 40% of this document, contain the following: national survey information, descriptions of case study sites, case studies, telephone survey questionnaire, case study observation schedule, and case study interview questionnaire.) (MN)