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Substantial skill shortages have manifested themselves in Australia because of poor planning, policy development and policy implementation over the past 15 years by Australian federal and state governments of all political persuasions. Two important factors contributing to failure of approaches to vocational education that have been very apparent for many years are lack of adequate theory underpinning skill development and concern for quality. These have had important consequences in weakening the attractiveness of vocational education when choices between university and vocational education are made. These also have had major implications for development of superior skill levels and qualifications, transfer of learning and problem solving. Drawing upon parallel issues in the UK, this paper considers what needs to be done to reconceptualise a form of vocational education suited to Australia in the 21st century that will make it more attractive to school leavers.