This thesis examines the Rational Expectations – Life Cycle hypothesis as originally expounded by Robert Hall. He showed that if agents act to maximize the expected lifetime utility of their consumption, then the marginal utility of consumption follows a sub-martingale. On certain assumptions, aggregate consumption, Ct, is then also a sub-martingale with respect to any lagged information set øt-1 such that Ct-1 < øt-1. Hall found that this hypothesis is, on the whole, supported by post-war United States data. The hypothesis is tested here for the first time on (post-war) Australian data, for various øt-1 and can only be rejected (and marginally at that) if øt-1 contains a particular measure of income or real per capita liquid assets. The evidence is, however, entirely consistent with a slightly modified form of the hypothesis.