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Australia's population has more than doubled since the end of World War II, spurred by an ambitious postwar immigration program. In the 19th century, Australia enacted strong measures to prevent immigration by nonwhites. After World War II, immigration from Greece, Turkey, Italy, and other countries increased Australia's cultural diversity. In 1973, Australia officially ended discriminatory immigration policies, and substantial Asian immigration followed. By 1988 about 40% of immigration to Australia was from Asia, and by 1997 Asians constituted about 5% of the population. The indigenous population, the Australian Aborigines and Torres Strait Islanders, make up 2.2% of the population, according to the 2001 Census. In 2001, the political campaign was dominated by issues of immigration and national security and there still remains substantial anxiety among Australians concerning immigration.

Perth is the state capital city of Western Australia, the largest state in Australia. Perth is the world's most isolated city of more than a million people. In June 2003 the Perth Metropolitan Area had an estimated population of 1,433,217, making it the fourth largest city in Australia.

Sydney is the capital city of the Australian state of New South Wales and Australia's largest and oldest city, founded in 1788.

Many Perth residents consider their city to be egalitarian and relaxed, with a relatively large middle class and a suburban lifestyle; however, as with all large cities, Perth does have pockets of extreme wealth and poverty. The population is easy-going and friendly, but can be parochial, especially towards the "Eastern States" which are often viewed with deep, but usually jocular, suspicion. This attitude can be attributed mainly to isolation — reflected in the widely-held belief that Perth is "the world's most isolated capital city".

The Great Barrier Reef, by far the world's largest coral reef, lies a short distance off the north-east coast of Australia. Uluru, in central Australia, is the second largest monolith in the world.

Melbourne has twice ranked first in a survey by The Economist of "The World's Most Livable Cities", once in 2002, and again in 2004. It is sometimes classed as a "world city"; one study group ranks Melbourne, on the basis of relative availability of specialised "advanced services" as a "minor world city" comparable to cities such as Vancouver, Osaka, and Prague.