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The original purpose of the research project reported here was to investigate the development of a cross-sectoral funding model for postcompulsory education and training in Australia. The research was intended to identify issues arising from differences in the funding arrangements for the four sectors: senior secondary schooling; vocational education and training (VET); higher education (HE); and adult community education (ACE). However, during the research process, it was decided that changing the funding model alone would not resolve many of the issues raised by the research, in particular the urgent need for the policies and practices within each sector to be made more consistent. The report examines the tensions within Australia's sector-based funding arrangements and identifies the areas, many related to funding, in which further work is required to improve cross-sectoral consistency.