This paper explores the recent developments in vocational education and training for team leaders in Australia’s automotive industry. The widespread introduction of team working in Australia was accompanied by the introduction of new vocational qualifications and the paper examines the impact that this has had on the skill development of team leaders. Team development in the Australian automotive industry is found to be increasingly dependent upon the informal work of team leaders as the automotive manufacturing companies wind back their commitment to broad-based skill development at work. There is an increased focus upon on-the-job skill development but much of this happens informally, with formal competency assessments taking place outside the team. Team leaders have an important role in team development but this role is not recognised in current competency-based training in Australia.