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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.

While having a large and vibrant arts and cultural life (notably including the yearly Melbourne International Comedy Festival and Melbourne International Film Festival), Melbourne is perhaps best known as one of the most sports-obsessed cities in the world.

Much of Australia's culture is derived from European and more recently American roots, but distinctive Australian features have evolved from the environment, aboriginal culture, and the influence of Australia's neighbours. The vigor and originality of the arts in Australia—films, opera, music, painting, theater, dance, and crafts—are achieving international recognition.

Sydney is located in a coastal basin between the Pacific Ocean to the east and the Blue Mountains to the west. Sydney features the largest natural harbour in the world, Port Jackson, and also enjoys more than 70 beaches, including the famous Bondi Beach.

To the visitor from the northern hemisphere, many of Australia's birds will immediately seem familiar - Australian wrens look and act very like northern hemisphere wrens, Australian robins seem to be close relatives of the northern hemisphere robins - but in fact the majority of Australian passerine birds are descended from the ancestors of the crow family, and the close resemblance is misleading: the cause is not genetic relatedness but convergent evolution.