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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.

The Australian aborigines , estimated to number as many as 350,000 at the time of the Europeans' arrival, was numbered at 386,049 (including Torres Strait Islanders, who are of Papuan descent) in 1996. Although still more rural than the general population, the aboriginal population has become more urbanized, with some two thirds living in cities. New South Wales and Queensland account for just over half of the Australian aboriginal population. In Tasmania the aboriginal population was virtually wiped out in the 19th century.

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.

To be accepted into Australia under the migration program a person must be a skilled migrant or sponsored by a family member that already lives in Australia, a third class covers special eligibility migrants which includes Australians returning to Australia that had to give up citizenship to live overseas.

Much of Australia's culture is derived from European and more recently American roots, but distinctive Australian features have evolved from the environment, aboriginal culture, and the influence of Australia's neighbours. The vigor and originality of the arts in Australia—films, opera, music, painting, theater, dance, and crafts—are achieving international recognition.

Australia has a highly concentrated ownership of media companies. Newspapers are dominated by two companies, News Corporation and John Fairfax Holdings. News Corporation publishes the only daily national newspaper, The Australian, as well as a daily newspaper in every capital city except Perth. Its holdings include The Daily Telegraph (Sydney), Herald Sun (Melbourne), The Courier-Mail (Brisbane) and The Advertiser (Adelaide).

The 1980s is regarded as perhaps a golden age of Australian cinema, with many wildly successful films, from the dark science fiction of Mad Max to the blatantly commercial Aussie-bloke fantasy of Crocodile Dundee, a film that defined Australia in the eyes of many foreigners despite having remarkably little to do with the lifestyle of most Australians. The indigenous film industry continues to produce a reasonable number of films each year, also many US producers have moved productions to Australian studios as they discover a pool of professional talent well below US costs. Notable productions include The Matrix and the Star Wars episodes II and III.

Almost in the exact center of the continent, Alice Springs is some 700 kilometres from the nearest ocean and 1500 kilometres from the nearest major cities: Darwin and Adelaide. Alice Springs is now the midpoint of Adelaide-Darwin Railway.