Standards-based assessment, or at least the concept of standards-based assessment, will provide a key strategy for the implementation of the New Zealand National Qualifications Framework. This paper considers the meaning of standards-based assessment and its role in New Zealand's assessment for nationally recognized qualifications. Standards-based assessment, which can be divided into competency-based and achievement-based assessments, is distinguished from norm-referenced assessment in that the measurement or outcome is assessed against some fixed criterion or level of achievement known as a standard. Competency-based assessment is then based on the presence or absence of a set of skills, while achievement-based assessment refers to the extent to which skills are present. Regardless of whether New Zealand has overemphasized the importance of standards-based assessment over norm-referenced assessment, establishing the validity and reliability of standards-based assessment and researching the questions that will enhance these qualities would seem to be a priority. (Contains 12 references.) (SLD)