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Australian literature began soon after the establishment of the country by Europeans. Early popular works tended to be of the 'ripping yarn' variety, telling tales of derring-do against the new frontier of the Australian outback. Writers such as Rolf Boldrewood, Marcus Clarke and Joseph Furphy embodied these stirring ideals in their tales and, particularly the latter, tried to accurately record the vernacular language of the common Australian. These novelists also give valuable insights into the penal colonies which helped form the country and also the early rural settlements. The transportation of prisoners, emigration to this once remote nation and the persecution and prejudice suffered by its indigenous peoples all contribute to a sense of alienation and exile which can be seen to run through at least the early writings of Australia.

Australia is situated in the middle of the tectonic plate, and therefore has no volcanism, although it may sometimes receive minor earthquakes. The terrain is mostly heavily weathered, low plateau with deserts, rangelands and a fertile plain in southeast. Tasmania and the Australian Alps contain a number of permanent icefields and numerous glaciers.

Since the recession "Australia had to have" (P. Keating) in the early 1990s, the Australian economy has not suffered a recession or "trough" in the business cycle in 13 years. Even the downturn of the early 2000s did not affect its consistent GDP growth. As of October 2004, unemployment had fallen to a level of 5.2%, the lowest level since the late 1970s.

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.

American-style chain stores are common including Subway, Pizza Hut, KFC, Burger King (known as Hungry Jacks due to a trademark issue), and of course McDonalds (commonly called Maccas by locals). An alternative to the US imports is offered by the Australian chicken fastfood chain Red Rooster, and by the corner Pizza shops, charcoal chicken stores, fish and chip shops and a wide range of small enterprises. Many of these sell high-quality food for reasonable prices, but the only way to find the good ones is to try them.

Debate about the role of the ABC continues, as many assign it a marginal role, and claim that American-influenced commercial TV and radio stations are far more popular choices. These critics claim that Australian children grow up watching Sesame Street and The Simpsons, eating fries at McDonalds, wearing baseball caps, speaking American slang, and some have never heard of Blinky Bill or the Magic Pudding. Television ratings are cited as backing this view, but it is less clear that these ratings tell the whole view. Certainly there have been many local television shows that have been successful, such as Skippy (in the late 1960s), Number 96 and The Box in the 1970s, Prisoner in the 1980s, and Neighbours and Home and Away (in the 1980s and 1990s), which have sometimes been even more successful abroad.