Benefits of collection of annual versus a single fleece record are investigated for breeding programmes of Australian Merino sheep. Breeding scheme alternatives are based on natural mating (N) or multiple ovulation and embryo transfer (MOET). The breeding objective is assumed to be an adult fleece trait which is expressed annually from a minimum of age 2 years, with a unity genetic correlation between annual records. Initial selection of parents can occur prior to the availability of their adult records, based on records collected at 6,12 or 18 months which have a maximum genetic correlation of 0·8 with the adult trait. Monte Carlo simulation is used to compare breeding programme alternatives, which allows overlapping generations and selection across age groups. MOET schemes select parents of minimum age 19 months in adult (A) schemes, 7 months in juvenile (J) schemes or 13 months when there are two breeding seasons per year. Natural mating results in an average of 1·09 lambs per ewe mated, whilst embryo transfer success rates follow realistic distributions (only 70% of donors giving live lambs) with an average of 3·45 lambs per donor flushed. Estimated breeding values, on which selection is based, are calculated by multiple trait selection index of an individual's own records or by multivariate best linear unbiased prediction (BLUP). In J schemes 7-month-old lambs may be selected on the basis of a pedigree index if no individual record has been collected at 6 months of age. Breeding scheme alternatives are compared on the basis of genetic response, rate of inbreeding and economic ‘income’ which is calculated as genetic response reduced for inbreeding depression, cumulated and discounted over a medium time horizon (14 years). The quantitative benefits of the collection of annual records are dependent on the choice of genetic and phenotypic parameters between traits, but these were chosen from the literature to be representative of annual fleece weight records in Merino sheep. Genetic response to selection and ‘income’ associated with the adult trait is increased by at least 15% in N, A and J schemes compared with when only a single record is collected at 18 months. The advantage of MOET over N schemes and the optimum number of sires to use is unchanged, but the average age of sires is increased. Both annual rate of inbreeding and average age of dams are unchanged. In N schemes, 80% of the benefits of collecting annual records on both sexes can be achieved by collecting records on males alone, whilst in MOET schemes measurement of dams contributes up to 50% of the benefit of the measurement of both sexes. Since MOET schemes have fewer dams to be recorded, the cost-effectiveness of collecting records on females is much higher than in natural mating schemes. Breeding programmes operating two mating seasons each year are found to be a viable alternative to J schemes: although genetic response is less, rate of inbreeding is also less, so that ‘income’ response is approximately equal.