Education policy-making in Australia remains one of the most complex of government's responsibilities, affecting a broad spectrum of social and political advancements of national and international importance. The advancement of education policy has been accepted as a key factor in achieving the labour productivity and innovation capacity that are needed to compete within the global economy and to build social capital. Yet, the challenge of development and implementation of education policy in Australia has been significantly influenced by its unique federal model, where the state and commonwealth jurisdictions increasingly overlap. This article offers a descriptive account of federal policy involvement in Australian education since federation, with particular attention to vocational education. It demonstrates that national education policy development is characterised by downwards, upwards and horizontal patterns of cooperation between national and state governments, which are in turn influenced by contextual factors such as national economic policy goals, economic and social conditions and political configurations. The article presents an innovative approach to educational research as it brings together two fields of specialisation: vocational education and training research and political science.