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The focus of this report is on evaluating from an individual, economic and social perspective how well the education and training system is working to meet the needs of young Australians. Education, at all levels, from primary through to higher education and vocational education and training, plays a crucial role in the development of individuals as active citizens in the work force and communities. An educated work force is vital to a strong and prosperous economy. The report is divided into six chapters: expenditure and resources; school education; transition to work and post-school study; higher education; vocational education and training; and a conclusion that evaluates the system against four key national goals: to provide adequate levels of resources and promote efficiency in delivery; to promote quality learning; to pursue equity objectives; and to ensure successful outcomes.