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The article discusses a broad examination of developments in Australia's teacher education policies in the postwar period and the political economy in which they were situated, with particular attention to the last decade when Labor governments have been in power. Shift from a policy conception in teacher preparations from professional education to competent practice has taken place. The past decade has seen very significant policy changes in teacher education in first world countries as diverse as Britain, the U.S. Underlying this shift has been an instrumental approach to education and teacher education in which they are seen by the state, the Australian Council of Trade Unions (ACTU) and business interests as key elements of a broader program for microeconomic reform, human capital, and the economic restructuring of the nation. A number of features contributed to a shift towards a more professional preparation of teachers during the 1960s and 1970s. They included continuing public and political pressure from teacher unions to raise teaching to a more professional status and a growing social and political acceptance of the necessity of an adequate process of teacher education. The increasing involving of Federal governments in educational issues, including higher education, during this period, was also very important.