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This study, based on in-depth interviews involving 40 organisations Australia wide, explores the benefits that effective management of diversity can deliver to an organisation, the challenges and issues presented, and strategies for managing diversity. Appendices detail the development of diversity management in Australia, demographic data, the development of the definition of diversity, and the survey questions. Content analysis of interview data revealed that organisations in Australia perceive several benefits of diversity management such as attraction and retention of diverse staff, increased ability to respond to economic pressure and establishing positive links with the wider community. The main diversity management strategies adopted by organisations included training and education, and target group employment strategies. However, a considerable number of organisations had no diversity programs in place.