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During 2006, the Adult Community and Further Education (ACFE) Board commissioned the Centre for Post-compulsory Education and Lifelong Learning (CPELL) at the University of Melbourne to undertake investigative background research to objectively inform and advise priority setting of the ACFE Board. In considering the potential priorities for 2007 and beyond, the study undertook a contextual analysis of Victorian and national human capital development policy, Victorian and national [adult and community education] ACE policy, relevant Australian ACE research completed during the period 2000-2006 and research on educational attainment and lifelong learning. This investigation also involved a detailed analysis and matching of 2005 [Australian Vocational Education & Training Management Information Statistical Standard] AVETMISS student level data with ACE program and student priorities, and analysis of national and international data on Australian and Victorian human capital. Strengths of Victorian ACE, challenges that face ACE and potential areas for further investigation were identified.