The split between higher education and vocational education and training (VET) in Australia is not clean. This paper discusses a number of aspects of this tertiary education sector: the Australian Qualifications Framework (AQF), which describes the qualifications offered by the three education sectors: schools, higher education and VET; student characteristics of the two sectors; a characterisation of higher education and VET; and student movement between the two sectors. Many education providers operate in both the higher education and VET sectors, and many have links with providers in the other sector. Higher education and VET differ in terms of student characteristics. The number of students transferring between the two sectors are substantial but are relatively small compared to the numbers following traditional pathways of school to TAFE [technical and further education] or higher education. Appendices include: (1) Number of domestic students in TAFE institutes in 2007; (2) Number of domestic and overseas students in higher education in 2007; (3) Actual student load for overseas and domestic students in higher education in 2007; (4) Three examples of articulation between TAFE and higher education in Australia; (5) Higher education provider data by basis of admission; and (6) Student outcomes data. (Contains 1 box, 20 tables, and 12 footnotes.)