There are many factors affecting demand for higher education in Australia. These include admission requirements, availability of alternative education pathways, population, costs at the time of study and repayment of deferred costs, perceptions about quality and value relative to price and opportunities foregone, the general economic situation and level of demand for graduates, and policy settings related to overseas student places. Each of these factors has an impact on overall student enrolments. This Backgrounder examines the expected changing domestic demand for university places as a result of demographic growth. In assuming most of the other factors remain as they are, the analysis is limited--but provides a partial quantification of the scenarios for which government and higher education institutions will have to plan. Detailed tables are appended. (Contains 11 figures and 8 tables.)