University admissions, like many other aspects of the higher education sector, are going through a time of significant change. From 2012, universities will receive full funding under the Commonwealth Grants Scheme (CGS) for as many places as they offer. Previously, the Government limited the number of funded places, with a tolerance band for "over-enrolments" above the allocated number. The Government has moved towards a demand-driven system in stages, raising the over-enrolment cap to 10% in 2010 (up from 5%) before removing caps in 2012. The demand-driven system is intended to bring demand and supply into closer alignment, and in doing this, to increase participation. Since the Government announced in March 2009 it would make this policy change, higher education participation has increased. This paper uses data on university applications and offers, collated by the Department of Innovation, Industry, Science and Tertiary Education (DIISRTE) to examine trends in demand and supply. The paper examines entry standards for school leaver applicants (for whom a simple measure of academic preparation, namely the Australian Tertiary Admission Rank (ATAR), is available) and discusses the broader implications of the demand-driven system for university admissions. (Contains 4 figures and 5 footnotes.)