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A reputation as a tolerant nation with strong humanitarian values is marred by past government policies excluding non-whites, and more recently a succession of scandals resulting in much criticism of Australia’s refugee programs.

The land that is now Australia was first discovered by Europeans in 1522 by the Portuguese explorer Cristóvão de Mendonça, but it was only in the 17th century that the island continent became the subject of European exploration, with several expeditions sighting Terra Australis: The Dutch explorer Willem Jansz (1606), the Portuguese explorer Luis Vaez de Torres in Spanish service (1607), and the Dutch explorers Jan Carstensz (1623), Dirk Hartog and Abel Tasman (1642), after whom is named the island of Tasmania, but which he himself originally named after Anthoonij van Diemenslandt.

Although most of the continent is desert or semi-arid, Australia nevertheless includes a diverse range of habitats, from alpine heaths to tropical rainforests. Because of the great age of the continent, its very variable weather patterns, and its long-term geographic isolation, much of Australia's biota is unique. Such species that are famously Australian include: koalas, kangaroos, emus, platypuses, wombats and echidnas.

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.

On 1 January 1901, federation of the Colonies was completed after a 10 year gestation period, and the Commonwealth of Australia was born, as a dominion of the British Empire. The Australian Capital Territory was separated from New South Wales in 1911, to provide a neutral place for the proposed new federal capital of Canberra (the initial capital having been Melbourne). Although Australia had become independent, the British government retained some powers over Australia until the Statute of Westminster in 1931, and the theoretical authority of the British Parliament over individual states was not completely severed until the passing of the Australia Act in 1986. The original constitution gave the federal government power to make laws relating to any race of people except Aborigines. In 1967, a referendum supported by more than ninety per cent of voters gave the federal government the right to enact laws to protect Aboriginal people and to count them in the census.

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.

New Zealanders are granted Special Category Visas on arrival in Australia, which allow them to remain in Australia to live or work indefinitely. However, New Zealand citizens are excluded from government subsidised tertiary education or other advantages granted to Australian citizens and permanent residents. New rules in 2001 divided New Zealanders living in Australia into two categories: those who were resident in Australia before 2001, and those who arrived in Australia after 2001. Those who were resident before 2001 may claim unemployment benefits after two years residence, as is the norm for permanent residents of other nationalities. New Zealanders who have arrived in Australia after 2001 are not entitled to any unemployment benefits at all, as is the norm for people living in Australia only on work permits.

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.

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.