Whilst the study on the impact of shrinkage is well documented in North America and Europe, the effects of population-driven shrinkage on rural and regional communities in Australia is comparatively under-researched. This is despite existing literature on the volatility of population change in regional and rural Australia. Therefore, there is cause for establishing a typology of shrinkage in the Australian context, unpacking the different and complex economic, social and environmental causes and consequences, and therefore impacts, and establishing a framework for ongoing research. In this paper, we set out the rationale for this typology, indicating how population drivers are not only extensive, but further complicated by the as-yet-unknown impacts of COVID-19 and teleworking. Regarding policy solutions, we suggest that while mindsets are increasingly changing from a need to reverse population trends to, instead, embracing opportunities and alternative futures for many regional and rural Australian towns, we need to first establish a typology of population shrinkage that is reflective of the Australian context to ensure policy responses are locally appropriate.Practitioner pointers- Mindsets around planning policies on the impacts of population-driven shrinkage are beginning to shift towards understanding the specific socio-economic circumstances of the localised area and adopting appropriate policy instruments accordingly.- To support this nascent shift, establishing a typology of shrinkage that is reflective of the Australian context is key.