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This report focuses on the issues that need to be resolved to achieve full implementation of User Choice, initially in MAATS (Modern Australian Apprenticeship and Traineeship System) and more widely in the vocational education and training (VET) system. The report defines User Choice by reference to its essential elements, develops the objectives for User Choice, identifies the key policy issues that need to be resolved to achieve full implementation and poses some options for their resolution. The key policy issues are: (1) demand side issues related to employers and employees, distribution of benefits and costs of training among employers, employees and government, greater involvement of employers in VET development, User Choice and small business, VET in schools, access and equity issues, and information; (2) supply responses such as maintaining and enhancing the momentum for structural reform to achieve a more open and competitive training market, third party access, cost and pricing, and cost shifting; (3) thin markets; and (4) maintaining the VET base.