The purpose of credit transfer and articulation is to make it easier for students to move between courses and institutions. This gives people more opportunities to fulfil their potential and respond to changing employment needs.
The terms can vary, but, articulation is generally used to mean movement between qualifications. Credit transfer generally means that a student gains credit for previous study so they can complete their current qualification more quickly.
Credit transfer and articulation can apply between courses within an institution and between institutions (e.g. moving from one university to another). However, since 2003 the Ministerial Council on Education, Employment, Training and Youth Affairs (MCEETYA) has had a particular focus on credit transfer between vocational education and training (VET) and higher education (e.g. between TAFE and university).
Early work on credit transfer and articulation was done by Universities Australia which established Policy Guidelines on Cross-sector Linkages 
in 2002. These guidelines were further developed by the Australian Qualifications Framework Advisory Board (AQFAB) to cover all education sectors. The National Guidelines on Cross Sector Qualifications Linkages were adopted in 2004. Also, in 2004 AQFAB adopted the related National Principles and Operational Guidelines for Recognition of Prior Learning.
The Department of Education, Employment and Workplace Relations collects some data on students moving from VET to higher education. The current data shows that the proportion of students being admitted to university on the basis of prior TAFE study has been increasing (from 8.9 percent of commencing domestic undergraduate students in 2002 to 10.1 percent in 2006). Also, the proportion of university students gaining credit for prior TAFE study has been increasing (from 2.6 percent of commencing domestic undergraduate students in 2002 to 3.4 percent in 2006).
In 2005, MCEETYA endorsed a number of initiatives on credit transfer . The Council has:
- adopted Good Practice Principles for Credit Transfer and Articulation at its May 2005 meeting. These provide high-level Ministerial endorsement for further improvements in institutional practice. They are broad in nature and do not compromise academic or institutional autonomy in assessing and awarding credit;
- adopted Principles for Good Practice Information Provision on Credit Transfer and Articulation from VTE to higher education at the July 2006 meeting, following consultation with stakeholders on draft principles approved by MCEETYA in 2005. The scope for initiatives to showcase and demonstrate good practice was considered as part of the response to the National Study on Credit Transfer referred to below;
- commissioned a national study of the practices in credit transfer and articulation from VET to higher education, mapped against the Good Practice Principles. This study involved extensive consultation with the VET and higher education sectors. The study identified gaps in practice and made recommendations for initiatives to drive further improvement. The study produced three reports which have now been released:
MCEETYA has also endorsed responses 
(27 KB) to the recommendations of the final report that refer recommendations to relevant organisations for further work and implementation. Annual progress reports will be provided to MCEETYA; and
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established a Working Party to improve data collection on credit transfer and articulation drawn from sector representatives and experts. This produced specifications for improved data collection. The improved data will be collected by the Department of Education, Employment and Workplace Relations from 2008.
In the 2007 Budget the Australian Government announced that FEE-HELP will be extended to full-fee-paying students studying higher level VET qualifications including VET Graduate Diplomas and VET Graduate Certificates. VET FEE-HELP assistance will be available for VET Diploma and Advanced Diploma courses where credit is available for higher education qualifications. This will make it easier for VET students to move to university.
The Going to uni website provides information on Australian higher education. It includes links to credit transfer and articulation information for universities and other institutions.
The Group of Eight (Go8) universities have established a Credit Transfer Agreement to enhance the mobility of students between Go8 universities.