In this paper, the author reflects, both as an academic researcher and as a senior practitioner, on the experience of competency‐based training (CBT) in the Australian vocational education and training system. She seeks to draw conclusions about the Australian experience using a typology drawn from the academic literature which focuses on the philosophical, educational, technical and market aspects of CBT. She concludes that, despite many improvements over the past 10 years, some potential problems remain. The system is controlled overly tightly by the interests of industry and it also exhibits some inflexibilities. Both of these act to disadvantage some groups of learners. Teachers and trainers do not have adequate skills to work skilfully and critically with CBT, leading to thin pedagogy and a narrow focus on assessment of individual items of performance.