This study compared two groups of overseas students who entered Melbourne and Monash universities in Melbourne in semester 1 1993. One group entered on the basis of an IELTS score and the other group entered on the basis of TOEFL score. Their academic performance at the end of semester 1 1993 was compared. Predictive validity coefficients were also compared. Differences were minimal with a slight tendency for the TOEFL to correlate more strongly than IELTS with undergraduate academic performance. The assumption made by admissions officers who use the two tests to make admissions decisions that the two tests are equivalent in their predictive validity was not refuted.