This paper studies the policies and strategies taken by the Australian government to build a close relation between secondary school and vocational training. The paper begins with a review of the Vocational Education and Training System (VET), then continues with a discussion on the issues and problems of VET in schools, especially the problems of employability. Our review of literatures and official documents points out the following characteristics and issues of VET: (1) Since the industries play an important role in the Australian VET; the retention rate has been raised for the 11th and 12th grade students. (2) Disadvantaged students get more benefits from the strategies of VET. Despite this fact, there are still some problems of grave concern, such as the question of how to make vocational education more esteemed.