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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.

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.

Although Australia was initially largely of British origin, and by the early 21st century was an overwhelmingly city-based society, receiving a large proportion of its cultural communication from either Hollywood and American TV networks, or home-grown productions that some claim are merely imitators.

The sharing of animal and plant species between adjacent parts of Australia, Papua New Guinea, and Papua and nearby Indonesian islands point to early land bridges closed when sea levels rose. The historically traditional movement of people between these places in primitive sailing craft for trade and fishing, point to the possibility of Arab and Chinese traders to the northern islands learning of and then visiting the shores of the southern continent from as early as the 9th century. Maps compiled in Europe from the late 1400s show parts of the coastline.

Since the end of World War II, the population of Australia has more than doubled; non-European immigration, mostly from the Middle East and Asia, has increased significantly since 1945 through an extensive, planned immigration program. From 1945 through 1996, nearly 5.5 million immigrants settled in Australia, and about 80% have remained; nearly one of every four Australians is foreign-born. Britain and Ireland have been the largest sources of post-war immigrants, followed by Italy, Greece, New Zealand, and the former Yugoslavia.

The Australian Constitution guarantees the separation of church and state; there is no state religion in Australia. Although the nation is broadly secular and few are church-goers, three-quarters of Australians are nominally Christian, mostly Catholic or Anglican. A diverse range of other religions are practised.

Melbourne is located in the south-eastern corner of mainland Australia, and is the southernmost mainland capital city. It looks out on to Port Phillip, its suburbs sprawling to the east, following the Yarra River out to the Yarra and Dandenong Ranges, south-east to the mouth of the bay, and following the Maribyrnong River and its tributaries west and north to flat farming country.

The earliest music of Australia was the folk music of the Australian Aborigines. Aboriginal music declined after European colonisation, and has only recently begun to be revived, often with modernised influences. Bands like Yothu Yindi have begun the popularisation of Aboriginal folk in Australia, New Zealand, the United Kingdom and elsewhere. Australia has also been home to notable classical composers as well as artists working in popular music genres such as rock, jazz, country and electronic music.

Australia's neighbouring countries include New Zealand to the southeast and Indonesia, East Timor, and Papua New Guinea to the north. The shortest border distance is between the mainlands of Papua New Guinea and Australia at about 150 km; however, the nearest inhabited island, Boigu Island, is about 5km from Papua New Guinea. This has led to a complicated border arrangement allowing access for 'traditional' uses of the waterway across the border by Papua New Guinean people and Torres Strait Islanders.

Australia is about 31.5 times bigger than the United Kingdom.