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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).

The Australian Constitution guarantees the separation of church and state; there is no state religion in Australia. Although the nation is broadly secular and few are church-goers, three-quarters of Australians are nominally Christian, mostly Catholic or Anglican. A diverse range of other religions are practised.

Sydney is the capital city of the Australian state of New South Wales and Australia's largest and oldest city, founded in 1788.

Australia may have been sighted by Portuguese sailors in 1601, and Dutch navigators landed on the forbidding coast of modern Western Australia several times during the 17th century. Captain James Cook claimed it for Great Britain in 1770. At that time, the native population may have numbered 300,000 in as many as 500 tribes speaking many different languages. The Aboriginal population currently numbers more than 300,000, representing about 1.7% of the population. Since the end of World War II, efforts have been made both by the government and by the public to be more responsive to Aboriginal rights and needs.

Australia's economic development was slow at first and based on the export of wool. This all changed with the discovery of gold in 1851 and mining has, overall, been the most important sector of the Australian economy. By the late 20th century, Australia had a prosperous Western-style mixed economy, with a per capita GDP on par with the four dominant Western European economies. In recent years, the Australian economy has been resilient in the face of global economic downturn, with steady growth. Rising output in the domestic economy has been offsetting the global slump, and business and consumer confidence remains robust. Australia's emphasis on reforms is another key factor behind the economy's strength. In the 1980s, the Labor Party, led by Prime Minister Bob Hawke and Treasurer Paul Keating, played a crucial role in modernizing Australia's economy.

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.

The Perth city skyline displays the economic prosperity the state has enjoyed in the past 20 years. The city's tallest building, Central Park, is the fifth tallest skyscraper in Australia (not measuring spires).

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.

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.