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Australia also has several inhabitated external territories (Norfolk Island, Christmas Island, Cocos (Keeling) Islands) and several largely uninhabited external territories: Coral Sea Islands Territory, Heard Island and McDonald Islands and the Australian Antarctic Territory.

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.

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.

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.

Australia is home to the Great Artesian Basin - an important source of water for people and cattle in the parched outback. This basin is the world's largest and deepest fresh water basin.

Emigration now also plays a role in changing Australian demographics. The term, Australian Diaspora, refers to the 850,000 Australian citizens who today live outside Australia. This phenomena is relatively new in Australia's history, estimated as having occurred over the last 40 years. Awareness of this demographic (almost 5% of the Australian population) is growing and supported by government initiates.

Australia's neighbouring countries include New Zealand to the southeast and Indonesia, East Timor, and Papua New Guinea to the north. The shortest border distance is between the mainlands of Papua New Guinea and Australia at about 150 km; however, the nearest inhabited island, Boigu Island, is about 5km from Papua New Guinea. This has led to a complicated border arrangement allowing access for 'traditional' uses of the waterway across the border by Papua New Guinean people and Torres Strait Islanders.

The name Australia derives from Latin australis meaning southern, and dates back to 2nd century legends of an "unknown southern land" (ie. terra australis incognita). The English explorer Matthew Flinders named the land Terra Australis which was later abbreviated to the current form. Previously, when the Dutch explored the area they named it Nova Hollandicus or New Holland.

Australia may have been sighted by Portuguese sailors in 1601, and Dutch navigators landed on the forbidding coast of modern Western Australia several times during the 17th century. Captain James Cook claimed it for Great Britain in 1770. At that time, the native population may have numbered 300,000 in as many as 500 tribes speaking many different languages. The Aboriginal population currently numbers more than 300,000, representing about 1.7% of the population. Since the end of World War II, efforts have been made both by the government and by the public to be more responsive to Aboriginal rights and needs.

Australians have traditionally had a very strong "underdog" attitude, that is they will support those whom appear to have the lesser hand, so long as Australia is not involved. This can be seen greatly from an occurance during the 2003 Rugby World Cup, where a Georgian Rugby Team arrived in Perth with a crowd of Perth based supporters cheering them on and welcoming them.