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This is the second in a series of annual reports to the Australian Parliament that tracks progress in Indigenous education and training. It enables the Commonwealth Minister for Education, Science and Training to report to the Parliament at the end of each funding year on outcomes associated with Indigenous education and training. In addition, the report provides important information for Indigenous and non-Indigenous Australians, the educational community and Indigenous students. Data has mainly been derived from official national collections or from Indigenous Education Strategic Initiatives Programme (IESIP) data. IESIP covers over 90% of Indigenous students in education and training. The report focuses on outcomes achieved in Indigenous education and training, comparing them with those of 2001 in order to enable education providers to evaluate their progress in the national context. It identifies four priority areas relating to improving outcomes for Indigenous students: literacy and numeracy, enrolments, attendance and retention and the gaining of qualifications. The report also looks at outcomes relating to developments in Indigenous influence, involvement and presence in 2002 in four priority areas: Indigenous employment, professional development of staff involved in Indigenous education and training, involvement of Indigenous people in decision making and the development of culturally inclusive curricula.