Health expectancies of the states 'Disability-free' and 'Disabled' are estimated for Australian females and males aged 60 and over, both by cohort from 1980 and current for survey years 1981, 1988, 1993 and 1998. Modifications of recently developed logistic regression techniques are used rather than the standard 1971 method due to Sullivan. Results from the three later surveys are broadly similar and differ in important respects from those of the 1981 survey. Based on the last three surveys our estimates support the view that, depending on age, two-thirds or more of the increase in female life expectancy over the decade 1988-1998 is spent in the Disabled state. The situation is worse for elderly men, for whom all of the increased years of expected life are estimated to be spent in the Disabled state. The findings do not support rectangularization of the survival curve or Disability-free survival curve.Keywords: Disability, health expectancy, logistic regression, multistate life tables, life expectancy, regression analysis, Australia Health expectancies are the future durations that a person expects to spend in different states of health before the inevitable outcome of death and thus are components of life expectancies. It is well known that life expectancies have been increasing, and a proposition that has attracted some support is that the extra years are ones of ill-health. Bebbington (1988:321) provides a succinct summary of alternative views, while a wider discussion can be found in Crimmins, Hayward and Saito (1994) and Verbrugge (1984).Australian health expectancies in 1981, 1988 and 1993 were estimated by Mathers (1996) following an earlier treatment using data for the first two of the three survey years (Mathers 1991). He found that, unlike other countries for which data were then available, Australian expectations of years with disability had increased both per se and relative to life expectancies. The development of new methods and the availability of updated and compatible data enables these findings to be re-examined. This is the main aim of this paper. Our findings are that the situation is complex but, depending on age and sex, two-thirds or more of the increased years of life expectancy are spent in a disabled state.