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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".

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.

Sydney is the capital city of the Australian state of New South Wales and Australia's largest and oldest city, founded in 1788.

New Zealanders are granted Special Category Visas on arrival in Australia, which allow them to remain in Australia to live or work indefinitely. However, New Zealand citizens are excluded from government subsidised tertiary education or other advantages granted to Australian citizens and permanent residents. New rules in 2001 divided New Zealanders living in Australia into two categories: those who were resident in Australia before 2001, and those who arrived in Australia after 2001. Those who were resident before 2001 may claim unemployment benefits after two years residence, as is the norm for permanent residents of other nationalities. New Zealanders who have arrived in Australia after 2001 are not entitled to any unemployment benefits at all, as is the norm for people living in Australia only on work permits.

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.

Melbourne has twice ranked first in a survey by The Economist of "The World's Most Livable Cities", once in 2002, and again in 2004. It is sometimes classed as a "world city"; one study group ranks Melbourne, on the basis of relative availability of specialised "advanced services" as a "minor world city" comparable to cities such as Vancouver, Osaka, and Prague.

Australian immigration has a checkered history. Immigration to the continent now called Australia began over 50,000 years ago, when the ancestors of Australian Aborigines arrived via Indonesia and New Guinea. Europeans began landing in the 1600's and 1700's, and the country was colonised by Britain in 1788.

The Great Barrier Reef, by far the world's largest coral reef, lies a short distance off the north-east coast of Australia. Uluru, in central Australia, is the second largest monolith in the world.

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.

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.