Evaluation literature suggests that community-based corrections has not met its originally state objective, although it has gained political acceptance and programs have proliferated. Introducing community corrections does not necessarily lead to the humane and just punishment sought, however. In addition, the effect may be to widen the net of social control. Thus, simply expanding the number of sentencing options does not necessarily achieve penal reform. Sentencing should not focus on deterrence and rehabilitation until definite proof exists that these can be achieved without sacrificing humanity and justice. However, retribution, incapacitation, and denunciation are attainable goals within the constraints of humanity and justice. Current penal policies do not clearly define the notion of personal responsibility for criminal behavior. In fact, many aspects of penal policy conflict with this notion. Australia should explore the idea of having a penal policy based on just deserts. It should also more clearly examine the role of imprisonment and the criteria for using community-based sanctions and should continue to try to make punishment more humane and just. Figures, tables, notes, and 83 references. For Part 1 of this article, see NCJ 102708.