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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.

Australia also has several inhabitated external territories (Norfolk Island, Christmas Island, Cocos (Keeling) Islands) and several largely uninhabited external territories: Coral Sea Islands Territory, Heard Island and McDonald Islands and the Australian Antarctic Territory.

Melbourne is the capital and largest city of the state of Victoria, and the second largest city in Australia, with a population of 52,117 in the Central Business District and 3,488,750 in the metropolitan area (census 2001).

Melbourne is a reasonably cheap and easy place to shop. There are innumerable clothing shops for every budget, though bargain hunters may wish to try the outlet stores in Bridge Road, Richmond.

Today's Australian cuisine is some of the most diverse available anywhere, due to the many cultural influences. Modern Australian cuisine has been heavily influenced by the country's South East Asian neighbours, and by the many waves of immigrants from there, and all parts of the world. Similarly, Greek, Lebanese and Italian influences are common. Fresh produce is readily available and thus used extensively, and the trend (urged by long-term government health initiatives) is towards low-salt, low-fat healthy cookery incorporating lean meat and lightly cooked, colourful, steamed or stir-fried vegetables.

Almost in the exact center of the continent, Alice Springs is some 700 kilometres from the nearest ocean and 1500 kilometres from the nearest major cities: Darwin and Adelaide. Alice Springs is now the midpoint of Adelaide-Darwin Railway.

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.