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During the latter part of the 1980s registered nurse education was transferred from hospital-based training to higher education in Australia and the UK. Examining this transfer process, analytical attention is focused on the contrast in subsequent funding arrangements for registered nurse education between the two nations. It is argued that the difference in funding arrangements can be explained by an analysis of two separate movements impacting on health care policy in both Australia and the UK: those of professionalisation in nursing and economic rationalisation. This paper discusses the implications of these movements and the subsequent differing educational funding arrangements in terms of the professionalisation of nursing in Australia and the UK. [ABSTRACT FROM AUTHOR]