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This discussion paper is part of a project commissioned by the National Centre for Vocational Education Research (NCVER) on financing of vocational education and training (VET). One of the issues for investigation is the extent to which employers contribute to the cost of training in other countries and how Australia compares. The results of the investigation into this topic are presented in this paper. The paper begins with an overview of the issues associated with the financing of VET, including theoretical issues and lessons to be drawn from other comparative reviews. A range of indicators on training participation in Australia and in overseas countries are presented in order to provide an understanding of the extent of national differences. The next two sections examine employer contributions towards entry-level training and ongoing training in Australia and raise points of comparison with other countries. The material from previous sections is then synthesised to provide a summary of total expenditure on VET and the share contributed by employers. The paper concludes with a discussion of whether a greater contribution by employers in Australia is necessary and ways in which this might be encouraged.