The unparalleled changes in recent years mean that a continuing focus on the preparation of young people for entry to the work force as the keystone of post-compulsory education and training in Australia is no longer sufficient for two reasons. First, technological change and other changes stemming from globalization of economies are now having a profound impact on the nature of work, the way it is organized, and the skills it requires. Second, the work forces of most countries, including that of Australia, are aging. These developments have implications for changes in Australia's approach to skill formation. The historical focus on the young in post-compulsory education and training policy is inadequate. The more recent trends, both in Australia and overseas, that recognize that these policies now need also to embrace the concept of lifelong learning. Although about 77 percent of the "economically active" population aged 15-64 years undertake some kind of education or training, much of this education or training is unstructured, informal, spasmodic, and minor. Australia has a comparatively high level of investment in education and training, but it is not among the countries with the very highest levels of commitment. Future directions must focus on the development of new learning pathways and an increased national investment in skills and knowledge. (Contains 69 references.) (YLB)