This paper studies the extent of graduate overeducation in Australia utilising both the objective and mean methods. As well, the paper tests for non‐linear returns to overeducation. It is found that the rates of graduate overeducation vary by both gender and with the methods utilised, and stand between 21% and 46%. Non‐linear returns to overeducation were evident among some groups of graduates. Young male graduates seem to suffer no penalty for overeducation compared with their matched peers, but this may be a reflection of technological change altering workplace requirements faster than changes in occupational titles.