Life expectancy has increased markedly over the last century in Australia. Has the number of years lived with a disability fallen or risen as overall life expectancy has lengthened? What is the impact of greater longevity on trends in disability? How much unmet demand is there currently for disability services? How are levels of demand expected to change over coming years? This paper starts by re-examining the trends in expected years of life lived with disability over a period of 15 years (from 1988 to 2003) using the latest available data. It then gives estimates of current levels of unmet demand for specialist disability services, and presents data and commentary relating to projected future demand and the key factors likely to influence levels of demand in coming years.