This paper highlights some of the challenges being faced by Australian higher education which are likely to have an impact over the next ten years and beyond and opportunities to deal with them. In doing so, the policy settings from the Dawkins reforms in the late 1980s to the present which have shaped the higher education landscape are described, bringing into perspective the operating context for Australian universities. Two key themes are discussed: universities' reliance on international students, and demographic shifts. The discussion that follows is how these drivers are likely to shape demand for higher education and what impact these will have on universities over the next ten years.