This report describes the aims, scope and processes for monitoring diabetes in Australia. Diabetes has become one of the leading threats to the health of Australians. It has been estimated that around one million Australians have diabetes, with 85-90% of these people having Type 2 diabetes. Evidence suggests that up to half of all people with Type 2 diabetes may not be aware that they have the condition. The burden of diabetes is even greater in certain population groups in Australia. Diabetes has a major impact on life expectancy and quality of life, especially if it remains undetected or is poorly controlled.