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Debate on teacher quality and quality in teaching and teacher education has been as vigorous in Australia as it has been in the UK and the USA In Australia, however, reform in teacher education has been subsumed within a national metapolicy of corporate federalism which is an amalgam of beliefs or discourses including neo-corporatism, economic rationalism, corporate managerialism and human capital The paper analyses the most recent document on reform of teacher education in Australia (the Ebbeck Report) and shows how its policy formulation is influenced by the discourse of corporate federalism It also shows how micro-economic reform in this sector is related to reforms in other sectors of education. [ABSTRACT FROM AUTHOR]