Abstract
While vocational rehabilitation for people with a diagnosis of a mental illness is recognised as a service delivery priority in Australia, Government sector roles, policy settings, legislation and structural characteristics of the labour market, impede its operation. The result is that well-established models of rehabilitation, such as transitional employment, have difficulty adapting to the Australian environment. The authors present their views on salient aspects of the Australian environment including the separation of clinical and rehabilitation services, public funding arrangements, workforce regulations and high unemployment levels. Contextual features with specific implications for Australians with psychiatric disability are highlighted. Comparisons are drawn between the Australian framework for vocational rehabilitation and that which exists in the United States of America. Finally, challenges and opportunities facing service providers in Australia are identified and discussed.