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Sydney is located in a coastal basin between the Pacific Ocean to the east and the Blue Mountains to the west. Sydney features the largest natural harbour in the world, Port Jackson, and also enjoys more than 70 beaches, including the famous Bondi Beach.

By far the largest part of Australia is desert or semi-arid — 40% of the land mass is covered by sand dunes. Only the south-east and south-west corners have a temperate climate and moderately fertile soil. The northern part of the country has a tropical climate: part is tropical rainforests, part grasslands, and part desert. The Great Barrier Reef, the world's largest coral reef, lies a short distance off the north-east coast and extends for over 1,200 kilometres. Uluru (until 1986 known as Ayers Rock), is the second largest monolith in the world and is located in central Australia (the largest being Mount Augustus in Western Australia). The largest city in the world by area (not by population) is Mount Isa in northern Queensland.

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".

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.

Hobart is the state capital of Tasmania, Australia's island state, and has a mild, temperate, maritime climate with four distinct seasons. Being in the southern hemisphere, summer is December to February.

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.

Australia has a prosperous Western-style capitalist economy, with a per capita GDP at the level of the four dominant West European economies; its developed market economy is dominated by its services sector (65% of GDP), yet it is the agricultural and mining sectors (7% of GDP combined) that account for the bulk (58%) of Australia's goods and services exports.

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.

As one would expect from a city its size, Melbourne contains all manner of pubs, bars, and nightclubs. The CBD contains a wide variety of venues, from the ubiquitous faux-Irish pubs proliferating around the world, to some very upmarket establishments (such as the Supper Club, which offers all manner of exclusive wines at exclusive prices), serious jazz venues on Bennetts Lane, fashionable nightclubs and dance venues, and massive pickup joints (of which The Metro on Bourke Street is perhaps the biggest).

Almost in the exact center of the continent, Alice Springs is some 700 kilometres from the nearest ocean and 1500 kilometres from the nearest major cities: Darwin and Adelaide. Alice Springs is now the midpoint of Adelaide-Darwin Railway.

Much of the area around Adelaide was once used for wine grape production, so that wine growing districts (such as the Barossa Valley, for which Adelaide and South Australia are well known) remain within a short drive of the city outskirts.

Australia is divided into six states and several territories. The states are New South Wales, Queensland, South Australia, Tasmania, Victoria and Western Australia. The two major territories are the Northern Territory (NT) and the Australian Capital Territory (ACT). The ACT also incorporates a separate area within New South Wales known as Jervis Bay Territory which serves as a naval base and sea port for the national capital.

Rainfall in Australia is highly variable, with frequent droughts lasting several seasons. Occasionally a duststorm will blanket a region or even several states and there are reports of the occasional large tornado. Rising levels of salinity and desertification in some areas is ravaging the landscape.