This article is based on research and detailed empirical work that has been conducted in Australia in the area of transferable skills. The article will review the issues related to transferable skills in the vocational education and training (VET) sector from a historical perspective. Included in the discus­sion are details of recent and current policy development. A commentary is provided on many of the challenges of policy implementation in the current environment. There has been considerable re­search into this issue in Australia, and it is hoped that this article will assist in a broader understanding of the issues surrounding transferable skills.