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This paper, written by the Director of the Canberra Institute Of Technology (CIT), commences with a brief introduction to the national vocational education and training (VET) system to set the overall context. The diverse and complex scope of the Australian VET system is examined. TAFE faces many diverse competitors for both students and government funding. The paper then outlines the changing nature of VET and TAFE students and the rapidly growing proportion of university students attending TAFE after finishing their university degrees to obtain some practical occupational skills to enable them to gain employment. In addition to this trend, the author also notes the use of TAFE as a means of refreshing skills and self-confidence for people returning to the workforce. The paper concludes with some comments on likely developments in the next five years. The author anticipates increasing competition for clients, the emergence of new programs within institutions and new specialised institutions, and greater customisation of courses to suit clients. TAFE will 'gradually introduce more diversity in delivery modes, in joint programs with other institutions, [and] in credit transfer both to and from schools, industry and universities'. In this way, TAFE will be more responsive to students' preferences and needs. The paper concludes with pertinent market research from CIT that shows that a growing factor in student choice of careers, course and institutions is the 'ability to see an occupational destination of a possible course of study and a record of employment success of graduates'.