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Today, many tribal Aborigines lead a settled traditional life in remote areas of northern, central, and western Australia. In the south, where most Aborigines are of mixed descent, most live in the cities.

In common with many other developed countries, Australia is currently experiencing a demographic shift towards an older population, with more people retiring and fewer people of working age. Similarly, a large number of Australian citizens (950,000 as of 2004) live outside of their home country. This number (almost 5%) represents a higher per capita percentage of overseas residents than many other countries including the United States. This phenomenon was, until recently, given little attention by the Australian government and media, but the term Australian Diaspora has now joined the Australian vocabulary.

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.

The Commonwealth of Australia is governed as a parliamentary constitutional monarchy. It is geographically the sixth-largest country in the world, the only one to occupy an entire continent, and the largest in the region of Australasia/Oceania. Australia includes a number of secondary islands the largest of which is Tasmania, which is an Australian State.

The first English explorers were Willem Dampier on the west coast of the continent in 1688, and Lieutenant James Cook who, in 1770, claimed the eastern two-thirds of the continent for Britain, despite orders from King George III to first conclude a treaty with the indigenous population. His report to London that Australia was uninhabited (see Terra nullius) provided impetus for the establishment of a penal colony there following the loss of the American colonies.

Canberra is approximately 3 hours by road from Sydney on the Hume Highway (National Highway 23) and Federal Highway, 7 hours by road from Melbourne on the Hume Highway and Barton Highway (National Highway 25), and 2 hours on the Monaro Highway (National Highway 23) to the snow ski fields of the Snowy Mountains and the (Mount) Kosciuszko National Park.

Melbourne is home to nine of the sixteen teams in the Australian Football League, whose five Melbourne games per week attract an average 35,000 people per game. Melbourne hosts the Australian Open tennis, one of the four Grand Slam tournaments; the Melbourne Cup - the most prestigious handicap horse race in the world; the hugely popular 'Boxing Day' cricket test match held each year from 26-30 December at the Melbourne Cricket Ground (a massive arena that can hold up to 100,000 spectators); the Australian Grand Prix Formula One championship.

Australia is a constitutional monarchy, with Elizabeth II reigning as 'Queen of Australia'. In 1999, a referendum was held on the question of constitutional change to a republic, with an appointed President replacing the Queen as head of state, but this was rejected. Various surveys held before and since the referendum suggest that the majority of Australians favour some form of republic, and hence many people ascribe the negative result of the referendum to dissatisfaction with the particular republican model that was proposed.

Traditional Australian cuisine was based on English cooking brought to the country by the first European settlers. This cuisine generally consisted of Sunday roasts, grilled chops, and other forms of meat, and was generally accompanied by vegetables (often known colloquially as "three veg") such as mashed potatoes, beans, peas, and carrots (often served soggy or overcooked). This trend has declined considerably with the multicultural emphasis of Australian culture over the last thirty to fifty years. However, the barbeque or "barbie" remains an important part of Australian life.