Abstract: This is the third in a series of annual reports to the Australian Parliament that tracks progress in Indigenous education and training. It enables the Commonwealth Minister for Education, Science and Training to report to the Parliament at the end of each funding year on outcomes associated with Indigenous education and training. In addition, the report provides important information for Indigenous and non-Indigenous Australians, the educational community and Indigenous students. The report discusses progress against the four major goals of the National Aboriginal and Torres Strait Islander Education Policy (AEP), as well as culturally appropriate education services. The four AEP goals are: (1) involvement of Aboriginal and Torres Strait Islander people in educational decision-making; (2) equality of access to educational services; (3) equity of educational participation; and (4) equitable and appropriate educational outcomes. The major developments in these areas for Indigenous people in the vocational education and training (VET) sector in 2003 include: a decline in the number of Indigenous VET students for the first time since the 1990s; strong growth in the number of Indigenous people participating in New Apprenticeships and traineeships; an increase in the number of New Apprenticeship course completions at higher levels; higher levels of representations of non-government VET providers; an overall decline in the number of Indigenous people employed in most government VET systems; a substantial increase in non-government VET institutions in both the number of Indigenous employees and in their full time equivalent employment; and more than half of the Indigenous Education Strategic Initiatives Programme (IESIP) professional development targets for VET were achieved. The contents are: Executive summary; Reporting on Indigenous education and training; Preschool; Schools; Vocational education and training; Higher education; National programmes; Payments under the Indigenous Education (targeted assistance) Act 2000 and other payments. Included as appendices are: The national Aboriginal and Torres Strait Islander Education Policy (AEP); Preschool statistical tables; School statistics tables; Vocational education and training statistical tables; Higher education statistical tables; performance in higher education - gender differences.