The term 'crossroads' is being used in two senses in this paper. The first refers to the Australian Government's recent Review of Higher Education (referred to as 'Crossroads Report') and the impact that the changes will have on the higher education sector and consequently social work education. And secondly, 'crossroads' is being used in the sense that social work education is being restructured by the changes occurring in universities. Social work programs are expected to be more 'entrepreneurial', more research oriented ('publish or perish'), and more efficient in teaching methodology (this has meant emphasis on technology, use of adjunct staff and larger classes). The profession through the professional body (Australian Association of Social Workers) accredits programs but is 'running behind' the changes in higher education. The paper reviews critically these changes in social work education, the higher education sector and 'welfare reform', and how these changes may effect the future direction of social work education.