Performance based pay has recently swung into the political spotlight as one way to 'revitalise' Australia’s teaching profession. Dr Lawrence Ingvarson reviews current pay structures in Australia and around the world, the impact of performance pay schemes already in existence, and the possibilities for performance pay. Recognition, remuneration and reward in teaching came under extensive review in an ACER report commissioned by the Australian Department of Education, Science and Training (DEST). The report examined current pay systems for teachers and evidence on the impact of different kinds of performance pay arrangements in Australia and several countries around the world, and looked at further investigation required of performance pay possibilities in Australia.