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This paper was presented at Vocational education at a distance: the Asia and the Pacific region workshop (TD/IRD 88.96). The vocational training market in Australia has undergone considerable change over the past five years with the introduction of competency-based training which is based on competency standards set by industry itself. This has enabled national accreditation of courses and the issue of awards with consistent names and meaning across all sectors of education and training throughout Australia. The change continues with implementation of a strong and diverse training market. At the same time the value of vocational education and training is becoming more apparent to enterprises which are becoming more willing to invest in the training and development of their own staff. Increased involvement of business in the design and delivery of vocational education and training has brought with it demands for quality programs which add real value to enterprises and which are value for money invested. The characteristics of the training system demanded by business is closely aligned to the characteristics of open and distance education. This gives rise to many opportunities for open and distance education and training institutions. It also challenges institutions to examine their core business and decide if this or something different is necessary to enable them to thrive in the future in the changed environment.