Teacher education in Australia is subject to a great deal of policy interest at both Federal and State levels; it is also part of education policy shifts for the whole university sector. This article examines Australian teacher education policy in terms of its governance, focusing on three current ‘sites of contestation’: university policy, budgetary policy, and Federal–State relations. In considering the ‘Australian case’, the authors aim to provide a case study of the ways in which ‘globalizing trends’ are played out in particular cultural, historical and political contexts.