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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.

Rainfall in Australia is highly variable, with frequent droughts lasting several seasons. Occasionally a duststorm will blanket a region or even several states and there are reports of the occasional large tornado. Rising levels of salinity and desertification in some areas is ravaging the landscape.

Since 1996, the Coalition government, led by Prime Minister John Howard, has continued to implement microeconomic reform policies. Some have claimed that the deregulation of the labour market during this period has resulted in a needed flexibility in the labour force. Others have criticised these deregulations as having a negative impact on worker's wages, safety and health grounds. Legislation introduced during this period sought to reduce union involvement and power, and has preferred to emphasise enterprise bargaining (a tendency towards wage bargaining). Also during this period, the Coalition government deregulated numerous other industries, including the telecommunications sector, and privatised many of the pre-existing natural monopolies.

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.

In 1901, Australia adopted a federal constitution and became a self-governing dominion of the British Empire. Australian troops took part in both world wars. Since World War II Australia has been transformed by a massive immigration programme. Australia remains a constitutional monarchy with Queen Elizabeth II as head of state: a referendum to establish a republic was defeated in 1999.

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.

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.

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.

Many plants that grow in Australia have special features to combat the forces of nature. Symbiosis is very common, as are plants with sunken stomata and large root stock. The plants are very hardy, and are generally able to quickly establish themselves so as not to miss available nutrients.