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This paper reviews the federal government’s proposed modernisation of the apprenticeship and training system and draws out implications of that modernisation for the key stakeholders (youth, employers, trade unions, state government authorities). The data base is composed of research undertaken by the Centre for Labour Market Research (CLMR) during 1996 plus materials uncovered by a literature survey of Australian and international research. The paper originally was prepared for and was financially supported by the Western Australian Department of Training. Apprenticeship training has remained strong in a limited number of traditional occupations and industries. It is in decline as part of a wider system of vocational education and training (VET), due to growing preference for further academic education and rising school retention rates. Current thinking in VET policy is that emerging trends in the nature of work will require a greater emphasis on general employability skills and knowledge at the entry level. Thus if apprenticeship is to be strengthened, its status must be increased towards a more general and institutionalised form of ‘alternance’. Apprenticeships also must be extended into other occupational areas, especially in the emerging information and service sectors. The Modern Australian Apprenticeship and Traineeship Scheme (MAATS) represents an intention to move in this direction. For a variety of reasons, herein explained, it is advisable that MAATS - as a label - have a rather short life and be replaced by a simple statement of the direction in which the federal government wants to proceed.