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This paper looks at the current debate in Australia about the place if any, of competency standards in the higher education system. It examines the arguments proposed by various writers about competency standards and relates them to the situation in Australia. The author argues that there are cogent reasons for rejecting the vocational/general education dichotomy, and concludes that it is possible to find a way of developing competency standards that conform to the general requirements and principles proposed by the different arguments discussed, and that meet the theoretical objections raised against competency standards.