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Training packages are sets of nationally endorsed standards and qualifications for recognising and assessing people's skills. They describe the skills and knowledge needed to perform effectively in the workplace. In Australia, each training package is developed by industry to meet the identified training needs of specific industries or industry sectors. In this position paper, TAFE Directors Australia (TDA) endorses the concept of training packages and acknowledges the benefits they offer in terms of flexibility, greater industry involvement in developing vocational education and training (VET), the adherence to competency-based learning, national consistency in qualifications, and extensive occupational coverage. However, TDA proposes that there are a number of challenges that will need to be addressed if the concept is to be truly realised and the needs of both employers and individual are to be met. The paper outlines these in relation to a number of areas including principles, funding, information systems and reporting requirements, professional development for teachers, the development of quality support materials (non-endorsed components), assessment, workplace experience, revision, and industry involvement. TDA also considers the term 'training package' to be misleading and suggests renaming to indicate the true nature of the concept.