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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.

English is the main official and spoken language in Australia, although some of the surviving Aboriginal communities maintain their native languages. A considerable number of first and sometimes second-generation migrants are bilingual; languages such as Italian, Cantonese and Greek are spoken in many communities.

Adelaide hosted the Formula 1 Grand Prix from 1985 on 1995 on a street circuit in the city's eastern parklands. The Formula 1 Grand Prix became a source of pride and losing the Grand Prix to arch-rival Melbourne under questionable circumstances left a void that has since been filled for the most part with the highly successful Clipsal 500 V8 Supercar race event, held on a modified version of the same circuit.

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).

Australia is unusual because the animal population evolved largely out of contact with the other continents. A very high percentage of Australian animals are endemic (found nowhere else) including about 70% of its birds and 95% of its mammals. Over time, marsupials filled most of the ecological niches that are occupied by placental mammals in most other parts of the world.

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.