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Canberra is approximately 3 hours by road from Sydney on the Hume Highway (National Highway 23) and Federal Highway, 7 hours by road from Melbourne on the Hume Highway and Barton Highway (National Highway 25), and 2 hours on the Monaro Highway (National Highway 23) to the snow ski fields of the Snowy Mountains and the (Mount) Kosciuszko National Park.

The Australian aborigines , estimated to number as many as 350,000 at the time of the Europeans' arrival, was numbered at 386,049 (including Torres Strait Islanders, who are of Papuan descent) in 1996. Although still more rural than the general population, the aboriginal population has become more urbanized, with some two thirds living in cities. New South Wales and Queensland account for just over half of the Australian aboriginal population. In Tasmania the aboriginal population was virtually wiped out in the 19th century.

In common with many other developed countries, Australia is currently experiencing a demographic shift towards an older population, with more people retiring and fewer people of working age. Similarly, a large number of Australian citizens (950,000 as of 2004) live outside of their home country. This number (almost 5%) represents a higher per capita percentage of overseas residents than many other countries including the United States. This phenomenon was, until recently, given little attention by the Australian government and media, but the term Australian Diaspora has now joined the Australian vocabulary.

The first English explorers were Willem Dampier on the west coast of the continent in 1688, and Lieutenant James Cook who, in 1770, claimed the eastern two-thirds of the continent for Britain, despite orders from King George III to first conclude a treaty with the indigenous population. His report to London that Australia was uninhabited (see Terra nullius) provided impetus for the establishment of a penal colony there following the loss of the American colonies.

During the period of 1855-1890, the six Crown Colonies each successively became self-governing colonies, which managed most of their own affairs. British law was adopted in each colony at the time of the granting of responsible government, and was subsequently modified by the individual legislatures. The British government retained control of some matters, especially foreign affairs, defence, international shipping. Despite its heavily rural based economy Australia remained significantly urbanised, centred particularly around the cities of Melbourne and Sydney. In the 1880s 'Marvellous Melbourne' was the second largest city in the British Empire. Australia also gained a reputation as a 'working man's paradise' and as a laboratory for social reform, with the world's first secret ballot and first national Labor Party government.

Sydney is a significant global and domestic tourist destination and is regularly declared to be one of the most beautiful and livable cities in the world, admired for its harbour, beautiful coastline, warm and pleasant climate and cosmopolitan culture. Sydney significantly raised its global profile in recent years as the host city of the 2000 Summer Olympics. The city's name is pronounced "SID-nee".

Many Perth residents consider their city to be egalitarian and relaxed, with a relatively large middle class and a suburban lifestyle; however, as with all large cities, Perth does have pockets of extreme wealth and poverty. The population is easy-going and friendly, but can be parochial, especially towards the "Eastern States" which are often viewed with deep, but usually jocular, suspicion. This attitude can be attributed mainly to isolation — reflected in the widely-held belief that Perth is "the world's most isolated capital city".

Much of Australia's culture is derived from European and more recently American roots, but distinctive Australian features have evolved from the environment, aboriginal culture, and the influence of Australia's neighbours. The vigor and originality of the arts in Australia—films, opera, music, painting, theater, dance, and crafts—are achieving international recognition.

Traditional "high culture" gains small attention from much of the population, it thrives nevertheless, with excellent galleries (even in surprisingly small towns); a rich tradition in ballet, enlivened by the legacy of Dame Margot Fonteyn and Sir Robert Helpmann; a strong national opera company based in Sydney; and good symphony orchestras in all capital cities--the Melbourne and Sydney symphony orchestras are said to be worthy of comparison with any.

Adelaide is often referred to as the 'City Of Churches', although this is a reflection more on Adelaide's past than its present. Rumour has it that for every church that was built in Adelaide, a public house was also built to serve the less pious.

While Aussies take a loss hard, chances are that just a few hours later and with some beers in them, players and fans have forgotten about the sting of defeat and are back to enjoying Australian life.

Despite the best intentions of government health schemes and cultural marketing initiatives, the traditional Australian palate is amply serviced by an extensive takeaway food industry.

Since 1996, the Coalition government, led by Prime Minister John Howard, has continued to implement microeconomic reform policies. Some have claimed that the deregulation of the labour market during this period has resulted in a needed flexibility in the labour force. Others have criticised these deregulations as having a negative impact on worker's wages, safety and health grounds. Legislation introduced during this period sought to reduce union involvement and power, and has preferred to emphasise enterprise bargaining (a tendency towards wage bargaining). Also during this period, the Coalition government deregulated numerous other industries, including the telecommunications sector, and privatised many of the pre-existing natural monopolies.

Australia's economic development was slow at first and based on the export of wool. This all changed with the discovery of gold in 1851 and mining has, overall, been the most important sector of the Australian economy. By the late 20th century, Australia had a prosperous Western-style mixed economy, with a per capita GDP on par with the four dominant Western European economies. In recent years, the Australian economy has been resilient in the face of global economic downturn, with steady growth. Rising output in the domestic economy has been offsetting the global slump, and business and consumer confidence remains robust. Australia's emphasis on reforms is another key factor behind the economy's strength. In the 1980s, the Labor Party, led by Prime Minister Bob Hawke and Treasurer Paul Keating, played a crucial role in modernizing Australia's economy.