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The shortage of appropriately skilled labour across Queensland and Australia has emerged as a significant issue for government and the wider community. This performance management systems audit assessed whether selected departments have suitable frameworks and systems in place to identify and address existing and emerging skills shortages in Queensland. Although skills shortages are a major concern requiring action by many areas of government, the three departments selected for this audit have key roles in implementing the Queensland Skills Plan (QSP) (indexed at TD/LMR 86.12), namely: Department of Education, Training and the Arts (DETA), Department of Employment and Industrial Relations (DEIR) and Department of Tourism, Regional Development and Industry (DTRDI) (formerly the Department of State Development). Overall it was found that the departments have suitable frameworks and systems in place to address skills shortages. DETA is responsible for implementing the QSP which includes 28 Skills Formation Strategies and the Skilling Queenslanders for Work initiative. Ten of the Skills Formation Strategies are managed jointly with DTRDI, while various private and public entities implement the remainder. DEIR is responsible for managing the Skilling Queenslanders for Work initiative. The Audit report has made 9 recommendations involving all 3 departments and these include: DETA takes a lead role across the public sector in enhancing coordination of resources to address skills shortage; DETA and DTRDI develop and implement a state specific strategy for addressing skills shortages in professional occupations in consultation with major stakeholders such as the Commonwealth, universities and relevant industry groups; DEIR evaluates the Skilling Queenslanders for Work initiative and its underlying programs on a regular basis; and DTRDI in consultation with DETA, reviews and enhances the governance arrangements which oversee the industry-specific initiatives and develops a performance reporting framework to measure the efficiency and effectiveness of the initiatives for reporting to senior management.