Since pronounced aging of the population became evident in the 1976
Australian census, there have been repeated expressions of concern
about the health care costs associated with this trend. The latest of
these has come from the National Commission of Audit (NCA)
which was established by the newly elected conservative Commonwealth
Government in June 1996 to undertake a wide-ranging review of the
financial position of the Commonwealth Government. The Terms of
Reference on which the NCA was to report included 'the impact of
demographic change on Commonwealth finances, with the intention of
making recommendations as to how emerging pressures could be
provisioned'. Many of the themes canvassed in its report are in common
with those raised in analyses of the implications of aging for health
care costs in other countries, but some reflect particular
characteristics of the Australian aged care system and social policy
context.