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This report examines the private financing of vocational education and training (VET). Private financing comprises company investment in the education and training of their employees as well as the contributions made privately by individuals towards the cost of their education and training. Government expenditure is no longer adequate to maintain socially desirable levels of national investment in human capital in order to ensure international competitiveness and national economic growth. Governments are therefore becoming concerned with private investment in the development of human capital because employers and private individuals may tend to under-provide and under-finance skills development. However, governments can intervene through a wide range of legal and fiscal measures designed to maintain the national training investment at the socially desirable levels. The report covers the following aspects of private financing of training: (1) arguments for government intervention in private financing of training; (2) government training incentives for private individuals; (3) fiscal and legal incentives for enterprise training investment; (4) enterprise training obligations; and (5) improving private financing of training.