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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".

Sydney boasts a full roster of musical, theatrical and artistic activity throughout the year, from the formal - including the Sydney Symphony Orchestra, the Sydney Theatre Company, the Sydney Dance Company, and the Archibald Prize - to festivals, including the Sydney Festival, a celebration of free performances throughout January. Many internationally known Australian rock bands have had their conception in Sydney, from Midnight Oil to INXS.

During the period of 1855-1890, the six Crown Colonies each successively became self-governing colonies, which managed most of their own affairs. British law was adopted in each colony at the time of the granting of responsible government, and was subsequently modified by the individual legislatures. The British government retained control of some matters, especially foreign affairs, defence, international shipping. Despite its heavily rural based economy Australia remained significantly urbanised, centred particularly around the cities of Melbourne and Sydney. In the 1880s 'Marvellous Melbourne' was the second largest city in the British Empire. Australia also gained a reputation as a 'working man's paradise' and as a laboratory for social reform, with the world's first secret ballot and first national Labor Party government.

With a population of approx. 170,000 people in the city proper (known as the "city of Sydney") and a metropolitan area population exceeding 4 million, the Sydney metropolis is the larger of the two main financial, transport, trade and cultural centres of Australia (the other being Melbourne, Sydney's long term rival to the title of pre-eminent Australian city).

The Australian Capital Territory was created at the chosen site of the capital city Canberra in an area called the Molongo River Valley. Canberra was founded as a compromise between the two largest cities, Melbourne and Sydney. The name 'Canberra' is derived from the indigenous Ngunnawal language, which is loosely translated into English as "meeting place".

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 Australian aborigines , estimated to number as many as 350,000 at the time of the Europeans' arrival, was numbered at 386,049 (including Torres Strait Islanders, who are of Papuan descent) in 1996. Although still more rural than the general population, the aboriginal population has become more urbanized, with some two thirds living in cities. New South Wales and Queensland account for just over half of the Australian aboriginal population. In Tasmania the aboriginal population was virtually wiped out in the 19th century.