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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.

By far the largest part of Australia is desert or semi-arid — 40% of the land mass is covered by sand dunes. Only the south-east and south-west corners have a temperate climate and moderately fertile soil. The northern part of the country has a tropical climate: part is tropical rainforests, part grasslands, and part desert. The Great Barrier Reef, the world's largest coral reef, lies a short distance off the north-east coast and extends for over 1,200 kilometres. Uluru (until 1986 known as Ayers Rock), is the second largest monolith in the world and is located in central Australia (the largest being Mount Augustus in Western Australia). The largest city in the world by area (not by population) is Mount Isa in northern Queensland.

Melbourne was the only city in the Southern Hemisphere in which the Three Tenors (Luciano Pavarotti, Plácido Domingo and José Carreras) performed on their world tour in 1997, and the only city in the world to host the Kiss Symphony, a combined performance of the rock band KISS and the Melbourne Symphony Orchestra in 2003.

Darwin is the capital of the Northern Territory, and is a city of 109,419 people (2001 census) on Australia's far north-western coastline. Darwin is reputed to suffer more lightning-strikes than any other inhabited place in the world. It is also home to the Territory's only university, Charles Darwin University.

The 1980s is regarded as perhaps a golden age of Australian cinema, with many wildly successful films, from the dark science fiction of Mad Max to the blatantly commercial Aussie-bloke fantasy of Crocodile Dundee, a film that defined Australia in the eyes of many foreigners despite having remarkably little to do with the lifestyle of most Australians. The indigenous film industry continues to produce a reasonable number of films each year, also many US producers have moved productions to Australian studios as they discover a pool of professional talent well below US costs. Notable productions include The Matrix and the Star Wars episodes II and III.

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".