The VU Student Dividend reflects a new approach to improving learning in Australian tertiary education. It is a landmark study that sets an important precedent, being the first institution level assessment of learning outcomes conducted to monitor and improve the quality of education. The Victoria University (VU) Student Dividend was conceptualised by VU, and developed and implemented by the Australian Council for Educational Research (ACER). The student assessment and graduate survey were piloted in 2008. The VU Student Dividend reflects an assessment of the extent to which VU’s courses and programs prepare students and graduates to engage productively in the world of work. Capability was assessed in three strategic areas of institutional interest: work readiness; career readiness; and future readiness. The three key constructs are conceptualised in a basic hierarchy. Work readiness is designed as a measurement of basic skills. Career readiness measures an individual’s ability to shape these basic skills into a higher order understanding of their position in the labour market. Future readiness focuses on student’s understanding and appreciation of the wider contexts that influence their professional and personal development. The VU Student Dividend is measured using a customised package of assessment and survey instruments developed by ACER. The package includes a secure online test for students, and a non-secure online and paper questionnaire for graduates.