EXHIBIT 11.1

RESMED INC. AND SUBSIDIARIES

COMPUTATION OF EARNINGS PER COMMON SHARE

(in thousands, except per share amounts)

	Year Ended June 30,
	2004		2003		2002
Basic Earnings:
Net income	$	57,284	$	45,729	$	37,506
Shares/ Weighted average number of common shares outstanding		33,694		33,054		32,174
Basic earnings per share	$	1.70	$	1.38	$	1.17
Diluted Earnings:
Net income	$	57,284	$	45,729	$	37,506
Shares/ Weighted average number of common shares outstanding		33,694		33,054		32,174
Additional shares assuming conversion of stock options under treasury stock method		1,431		1,385		1,906
Weighted average number of common and common equivalent shares outstanding as adjusted		35,125		34,439		34,080
Diluted earnings per share	$	1.63	$	1.33	$	1.10

See accompanying report of independent registered public accounting firm.