This booklet, which is intended for vocational educators/trainers in Australia, explains the principles and techniques of competency-based training (CBT). The following topics are discussed in the first 10 sections: the decision to adopt CBT in Australia; the meaning of competency; teaching and learning to become competent (competency standards as the base of many workplace activities, the National Training Board's role in guiding CBT's development); the framework for CBT; identification of the need for training (preparing to train, formulating training plans); training design and development (establishing expected outcomes in terms of jobs' competency standards, breaking complex outcomes down into simple steps, choosing the assessment approach, planning the learning program's sequence, reviewing the process with participants, checking existing training programs); organization of training resources (using a checklist and enlisting supervisors' aid in the training process); training delivery and evaluation (striving for continuous improvement, understanding recent changes in the trainer's role, making learners the focus of training delivery); assessment of trainees' performance (the key to effective learning, competency-based assessment, assessment in the CBT framework); and the extras involved in implementing CBT (doing the paperwork, promoting a learning culture). The final 2 sections contain a 70-item bibliography and a glossary. (MN)