An overview of Australia's demographic trends highlights the potential adverse impacts of declining population growth and population ageing on the long-term social and economic viability of regional areas. On current trends, South Australia (SA) and Tasmania are at greatest risk of a reduction in services and contraction of local economies which in turn lead to a loss of employment opportunities and further outmigration. Regional areas also attract a lower share of overseas migrants, thus compounding the effects of population decline. A number of issues need to be considered if the potential negative impacts of current demographic trends are to be averted. These include the positive impacts of immigration on Australia's population growth and economy, the need to address regional disparities in immigrant settlement patterns, and fertility issues.