The impact of the introduction of Australia's competency-based Certificates of General Education for Adults (CGEA) in 1994 was examined through a participatory action research-based study. Data were collected from 3 sources: reflective journals kept by 12 practitioners, interviews with 13 practitioners, and related documents. Accreditation of the CGEA was credited with the following positive impacts: bringing adult literacy and basic education in from the margins; offering adult students access to mainstream credentials and pathways; and aiding development of good teaching practice by facilitating a more rigorous approach to theoretical underpinnings and curriculum planning/delivery. The following problems arising from introduction of the CGEA were noted: inadequate funding for required moderation and professional development; encouragement of "creaming" because of funding by outcomes; confusion regarding CGEA pathways; inadequate understanding of the CGEA by providers of industrial and vocational training; inadequate guidance on curriculum development; and increased levels of pressure on teachers and students. Review and revision of the CGEA in light of the study findings was recommended. (The bibliography contains 65 references. Appendixes constituting approximately 50% of this document contain 11 teachers' reflections on the CGEA's impact on their practice and examples of CGEA competency levels and elements.) (MN)