This report begins by recognizing that Australia's recent immigration, fertility, and mortality trends have resulted in a rapid increase not only in the numbers of older Australians but also in their proportion of the total population. After briefly reviewing the contemporary demographic aging of Australia's population and its likely course over the next two decades, this report examines the Australian social security system which is noncontributory and historically has focused on the alleviation of poverty rather than the replacement of earnings. The paper discusses the liberalization of the eligibility criteria for the age pension, widened access to government-subsidized or funded pensions, private superannuation, and the range of services available to the aged. The report examines how these changes have contributed to modifying age at retirement, migration behavior, housing, and living arrangements of the elderly. Recent pressure to change the social security provisions for the aged is considered, some of the proposed changes are reviewed, and their possible effects upon the behavior and well-being of the Australian aged population are briefly addressed. It is argued that the present system disproportionately favors the better-off segments of the older population and that there exists a danger that these inequalities will be exacerbated, especially if a political strategy of across-the-board cutbacks in provisions is preferred to reductions in eligibility for support and services. (Author/NB)