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Governments are keen to enact policies to secure greater contributions from Australian enterprises for the skill development of their employees. Drawing on a review of international literature and data from interviews, a series of policy options are discussed and evaluated in this paper. A number of funding models are described. However, before evaluating the applicability of particular models, the purposes that government is seeking to realise through policy measures need to be clarified. These purposes range from securing a greater private sector contribution to the cost of the vocational education system through to a focus on developing employees’ skills. Different purposes will warrant different kinds of action, kinds of expenditure and policy measures. In considering what policy options are most viable, evidence from the implementation of policy elsewhere is used to discuss and predict the viability and outcomes of those measures implemented here.