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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.

Although Australia has scarcely more than two persons per square kilometer of total land area, this raw figure is highly misleading: most of the continent is desert or semi-desert and of no agricultural value. In consequence, Australia is one of the world's most urbanized countries: less than 15% of the population live in rural areas.

Hobart is internationally famous among the yachting fraternity as the finish of the Sydney to Hobart Yacht Race which starts in Sydney on Boxing Day (the day after Christmas Day). The arrival of the yachts is celebrated as part of the Hobart Summer Festival, a food and wine festival beginning just after Christmas and ending in mid January.

Perth is set on the Swan River, so named because of the native black swans. It is a sprawling city, extending to Joondalup in the north, Mandurah in the south and Mundaring in the east. The coastal suburbs take advantage of Perth's oceanside location and clean beaches. To the east, the city is bordered by a low escarpment called the Darling Scarp. Perth is on generally flat, rolling land - largely due to the high amount of sandy soils and deep bedrock.

Australia has been inhabited for at least 50,000 years, since the remote ancestors of the current Australian Aboriginal people arrived from Southeast Asia. The land was not discovered by Europeans until the 17th century. It was claimed for Britain in 1770, and first colonised in 1788 as a penal colony. Five other colonies, some penal and some free, were founded in the early 19th century.

The geography of Australia encompasses a wide variety of biogeographic regions being the world's smallest continent but the sixth-largest country. The population is concentrated along the eastern and southeastern coasts; regular, tropical, invigorating, sea breeze known as "the Doctor" occurs along the west coast in the summer.

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 exact date of the first human habitation of Australia is still a subject of considerable research. There is strong scientific evidence for a presence around 50,000 years ago, a period of massive ecological upheaval in Australia which is believed to be consistent with human colonisation. However, there is some speculation about considerably earlier arrivals, even as far as 100,000 or more years ago. These first Australians were the remote ancestors of the current Australian Aborigines, and arrived via land bridges and navigation of significant sea crossings from present-day Southeast Asia.

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 education is not a federal concern, government grants have aided in the establishment of numerous state universities including the University of Sydney (1850), the University of Melbourne (1853), the University of Adelaide (1874), the University of Tasmania (in Hobart, 1890), the University of Queensland (in Brisbane, 1909), and the University of Western Australia (in Perth, 1911).

American-style chain stores are common including Subway, Pizza Hut, KFC, Burger King (known as Hungry Jacks due to a trademark issue), and of course McDonalds (commonly called Maccas by locals). An alternative to the US imports is offered by the Australian chicken fastfood chain Red Rooster, and by the corner Pizza shops, charcoal chicken stores, fish and chip shops and a wide range of small enterprises. Many of these sell high-quality food for reasonable prices, but the only way to find the good ones is to try them.

Because of the aging population, Australia maintains one of the most active immigration programs in the world, absorbing tens of thousands of immigrants from all over the world every year. Most permanent resident visas are granted on the basis of professional skills or family associations.