This exploratory paper considers the practical and theoretical implications of a graded system of assessment in competency-based training within the Australian Vocational Education and Training System. The characteristics of competency-based training are considered and the possible relationships to graded approaches are discussed. The discussion reflects on prominent research in the competency-based assessment domain, including Peddie (1993), Williams and Bateman (2003) and Newton (2018b) to consider the limitations and applications of various models.