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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.

Most of the Australian population descends from 19th and 20th century immigrants, most from the UK and Ireland to begin with, but from other sources in later years. Although the Australian colonies were founded as a penal colonies (except for South Australia and Western Australia - with the latter later receiving convicts), the transportation of British convicts to Australian colonies was gradually phased out between 1840 and 1868. During the "gold rush" of the late 19th century, the convicts and their descendants were rapidly overshadowed by hundreds of thousands of free settlers from many different countries: for example, in the 1850s about two per cent of the combined populations of Britain and Ireland emigrated to New South Wales and Victoria.

Australia has had a significant school of painting since the early days of European settlement, and Australians with international reputations include Sidney Nolan, Russell Drysdale, and Arthur Boyd—not to mention the prized work of many Aboriginal artists. There are excellent art 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, Opera Australia, made prominent by the world renowned diva Dame Joan Sutherland; and symphony orchestras in all capital cities, in particular the Melbourne and Sydney symphony orchestras. In ths field, conductor Sir Charles Mackerras has achieved international renown.

Hobart is the state capital of Tasmania, Australia's island state, and has a mild, temperate, maritime climate with four distinct seasons. Being in the southern hemisphere, summer is December to February.

A sun-baked city that can go weeks or even months without substantial rainfall, one of Perth's main attractions lies in the pristine quality of its beaches. Unbroken stretches of golden sands run the entire length of the city's coastal suburbs.