Using qualifications as policy instruments to increase participation in education and training and to reduce unemployment, especially youth unemployment, appears to be growing in Organisation for Economic Cooperation and Development (OECD) countries. This paper considers the case of one authority, the Victorian Qualifications Authority (VQA), established by the Victorian Government in 2001 and responsible for determining and strengthening the range of post-compulsory qualifications for schools and vocational education and training. In establishing its cross-sectoral role, the VQA moved rapidly to introduce a new qualification directed towards those young people who seek applied and practical studies and who leave school before completing Year 12 or its equivalent. The paper outlines the nature of the changes proposed and the approaches taken to its development. These recognise that pedagogy is critical to increasing participation and that students who engage in learning at school are more likely to become lifelong learners.