Population ageing require more health care services. Australian Aged care system is comprises of public, private and community institutions that provide services to old people. The Australian aged care system is globally recognised for high quality services, regulations, government funding and co-operation between government, community and service providers. Aged care services in Australia available to people, both in the form of residential services and home based services (The Australian trade commission 2015). Residential care is provided at the aged care facility, it is provided to those people who need high care. It provides living services, accommodation and assistant with personal tasks. Residential care services are provided by private sectors, not –for- profit sector such as charitable, religious and community groups and government. Community care services are provided at person's own home by private carers (Economics 2010). Presently more than million people receive aged care services, out of which half million people receive services at home (The Department of social services 2015). Government is providing funding to this sector and currently 70-85% of the cost of these funding are provided by government through taxation. The not- for- profit sector provides 65% of Australia's residential care services ( The Australian trade commission 2015).According Economics (2011), there were approximately 1000 residential aged care providers running 2700 aged care facilities. In recent years, the number of residential care places has increased; this is just because of increase the provision by profit providers, especially in major cities.Economic opportunities and challenges of this industry in future:-This section will outline the opportunities and challenges facing a firm in aged care Industry by using Population, Productivity and Participation, which are key drives of economic growth.