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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.

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.

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.

Australia is unusual because the animal population evolved largely out of contact with the other continents. A very high percentage of Australian animals are endemic (found nowhere else) including about 70% of its birds and 95% of its mammals. Over time, marsupials filled most of the ecological niches that are occupied by placental mammals in most other parts of the world.

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.

Australia has three major commercial television networks, the Nine Network, Seven Network and the Ten Network. It also has two public broadcasters, the Australian Broadcasting Corporation (ABC and colloquially Channel 2) and the Special Broadcasting Service (SBS).

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).

As well as the natives, colonisation and modernisation has brought many flora and fauna to Australia from around the world, some of which have done too well and have reached plague proportion, often threatening, if not having already wiped out various native species. One species that saw its demise due to hunting after European settlement was the Tasmanian Tiger, or Thylacine.

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.