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The name Australia derives from Latin australis meaning southern, and dates back to 2nd century legends of an "unknown southern land" (ie. terra australis incognita). The English explorer Matthew Flinders named the land Terra Australis which was later abbreviated to the current form. Previously, when the Dutch explored the area they named it Nova Hollandicus or New Holland.

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.

The most popular spectator sport in Perth is Australian Rules football. Two teams in the Australian Football League (AFL) are based in Perth: the West Coast Eagles and the Fremantle Football Club (or "The Dockers").

Writers who have achieved world recognition include Thomas Keneally, Les Murray, Colleen McCullough, Nevil Shute, Morris West, Jill Ker Conway, Booker Prize winners D.B.C. Pierre and Peter Carey and Nobel Prize winner Patrick White. In the popular music sphere Australian bands and musicians have had considerable international success. Some notable examples include the 1960s successes of The Easybeats and the folk-pop group The Seekers, through the heavy rock of AC/DC, the disco of the English-born Bee Gees, the slick pop of INXS and more recently Silverchair and Savage Garden. In the new millennium, garage rock bands Jet and The Vines have achieved popular success locally and in the United States and the United Kingdom, with the work of both featuring prominently in films and advertising.

Probably the most well known Australian food is Vegemite. Similar to the British Marmite it is a strong tasting, yeast extract spread, common in sandwiches or on toast. Some Australian sweets, such as the Violet Crumble chocolate bar, are manufactured in Australia and are sold within the country, as well as a few international places such as Hawaii. Tim Tams are a chocolate biscuit, generally only common in Australia.

Immigration has been a major factor in Australia's development since the beginning of European settlement in 1788. For generations, most settlers came from Britain and Ireland, and the people of Australia are still predominantly of British or Irish origin, with a culture and outlook similar to that of the United Kingdom and the United States.

Melbourne's own vibrant music scene has fostered many internationally renowned artists and musicians, with links to Nick Cave, Crowded House, AC/DC, John Farnham, Graeme Bell and Kylie Minogue.

Hobart is internationally famous among the yachting fraternity as the finish of the Sydney to Hobart Yacht Race which starts in Sydney on Boxing Day (the day after Christmas Day). The arrival of the yachts is celebrated as part of the Hobart Summer Festival, a food and wine festival beginning just after Christmas and ending in mid January.