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Until the late 1960s, many have argued that Australian popular music was largely indistinguishable from imported music: British to begin with, then gradually more and more American in the post-war years. The sudden arrival of the 1960s underground movement into the mainstream in the early 1970s changed Australian music permanently: Skyhooks were far from the first people to write songs in Australia, by Australians, about Australia, but they were the first ones ever to make money doing it. The two best-selling albums ever made (at that time) put Australian music on the map. Within a few years, the novelty had worn off and it became commonplace to hear distinctively Australian lyrics and sometimes sounds side-by-side with the imitators and the imports.

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.

The Australian Capital Territory was created at the chosen site of the capital city Canberra in an area called the Molongo River Valley. Canberra was founded as a compromise between the two largest cities, Melbourne and Sydney. The name 'Canberra' is derived from the indigenous Ngunnawal language, which is loosely translated into English as "meeting place".

Melbourne is the capital and largest city of the state of Victoria, and the second largest city in Australia, with a population of 52,117 in the Central Business District and 3,488,750 in the metropolitan area (census 2001).

Australia's comparative advantage in primary products is a reflection of the natural wealth of the Australian Continent and its small domestic market; 19 million people occupy a continent the size of the contiguous United States. The relative size of the manufacturing sector has been declining for several decades, and now accounts for just under 12 percent of GDP.

Melbourne is a reasonably cheap and easy place to shop. There are innumerable clothing shops for every budget, though bargain hunters may wish to try the outlet stores in Bridge Road, Richmond.

Perth is the state capital city of Western Australia, the largest state in Australia. Perth is the world's most isolated city of more than a million people. In June 2003 the Perth Metropolitan Area had an estimated population of 1,433,217, making it the fourth largest city in Australia.

Canberra (pronounced CAN-bruh , CAN-berra, Can-BER-ra or Can-buh-ruh) is Australia's capital city and largest inland city (population 311,000). It is located at the northern end of the Australian Capital Territory, (ACT; population 339,000). Canberra is the 7th most populous city in the country, though it is smaller than any of the state capitals except Hobart.

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".

Australia is home to the only three extant monotreme species in the world - two echidnas and the Platypus. The only placental mammals naturally found on the Australian mainland are bats; a large number of rodents which arrived only about 5 million years ago, and the Dingo, which was introduced to Australia by humans perhaps 7000 years ago.

Adelaide hosted the Formula 1 Grand Prix from 1985 on 1995 on a street circuit in the city's eastern parklands. The Formula 1 Grand Prix became a source of pride and losing the Grand Prix to arch-rival Melbourne under questionable circumstances left a void that has since been filled for the most part with the highly successful Clipsal 500 V8 Supercar race event, held on a modified version of the same circuit.

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 population has more than doubled since the end of World War II, spurred by an ambitious postwar immigration program. In the 19th century, Australia enacted strong measures to prevent immigration by nonwhites. After World War II, immigration from Greece, Turkey, Italy, and other countries increased Australia's cultural diversity. In 1973, Australia officially ended discriminatory immigration policies, and substantial Asian immigration followed. By 1988 about 40% of immigration to Australia was from Asia, and by 1997 Asians constituted about 5% of the population. The indigenous population, the Australian Aborigines and Torres Strait Islanders, make up 2.2% of the population, according to the 2001 Census. In 2001, the political campaign was dominated by issues of immigration and national security and there still remains substantial anxiety among Australians concerning immigration.

The British Crown Colony of New South Wales began by the establishment of a settlement (later to become Sydney) in Port Jackson by Captain Arthur Phillip on January 26, 1788. The date of arrival of the First Fleet was later to become the date of Australia's national day, Australia Day.

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.