This report examines two sets of issues, the first being whether Indigenous Australians obtain a lower return on investment in education and training than other Australians. If they do, then this would partly explain why, in general, Indigenous participation in education and training is relatively low. The second issue is whether Indigenous participation is different once background characteristics--such as remoteness--are taken into account. To investigate these questions, the research uses previous research and a number of datasets: the National Aboriginal and Torres Strait Islander Social Survey, the Census of Population and Housing, the Australian Early Development Index and the Longitudinal Surveys of Australian Youth. The overall message is that, on the whole, Indigenous Australians have a positive return from education and training. Therefore it can be concluded that differential returns are not especially important in understanding differences in participation. The authors also find that, almost universally, background characteristics (including academic achievement at an earlier age) do not explain differential participation. Differences appear at an early age and then compound through the schooling system. (Contains 3 footnotes.)