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On 1 January 1901, federation of the Colonies was completed after a 10 year gestation period, and the Commonwealth of Australia was born, as a dominion of the British Empire. The Australian Capital Territory was separated from New South Wales in 1911, to provide a neutral place for the proposed new federal capital of Canberra (the initial capital having been Melbourne). Although Australia had become independent, the British government retained some powers over Australia until the Statute of Westminster in 1931, and the theoretical authority of the British Parliament over individual states was not completely severed until the passing of the Australia Act in 1986. The original constitution gave the federal government power to make laws relating to any race of people except Aborigines. In 1967, a referendum supported by more than ninety per cent of voters gave the federal government the right to enact laws to protect Aboriginal people and to count them in the census.

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.

The British Crown Colony of New South Wales began by the establishment of a settlement (later to become Sydney) in Port Jackson by Captain Arthur Phillip on January 26, 1788. The date of arrival of the First Fleet was later to become the date of Australia's national day, Australia Day.

The publicly funded Special Broadcasting Service carries TV and radio programmes in a variety of languages, as well as world news and documentary programming in English, and is seen as less highbrow than the ABC. SBS does have a small following, having the distinction of being the TV channel most likely to show soccer, the most played sport in Australia but said to be the least watched.

Australian language is contradictory: it combines a mocking disrespect for established authority, particularly if it is pompous or out of touch with reality, with a distinctive upside-down sense of humour. For instance, Australians take delight in dubbing a tall man "Shorty", a silent one "Rowdy" a bald man "Curly", and a redhead, of course, is "Blue".

The most popular spectator sport in Perth is Australian Rules football. Two teams in the Australian Football League (AFL) are based in Perth: the West Coast Eagles and the Fremantle Football Club (or "The Dockers").

Adelaide is often referred to as the 'City Of Churches', although this is a reflection more on Adelaide's past than its present. Rumour has it that for every church that was built in Adelaide, a public house was also built to serve the less pious.