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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.

Melbourne is located in the south-eastern corner of mainland Australia, and is the southernmost mainland capital city. It looks out on to Port Phillip, its suburbs sprawling to the east, following the Yarra River out to the Yarra and Dandenong Ranges, south-east to the mouth of the bay, and following the Maribyrnong River and its tributaries west and north to flat farming country.

The cinema of Australia has a long history—in fact, it is claimed that the first feature-length film, was actually an Australian production, The Story of the Kelly Gang. During the late 1960s and 1970s in influx of government funding saw the development of a new generation of directors and actors telling distinctively Australian stories.

Many Perth residents consider their city to be egalitarian and relaxed, with a relatively large middle class and a suburban lifestyle; however, as with all large cities, Perth does have pockets of extreme wealth and poverty. The population is easy-going and friendly, but can be parochial, especially towards the "Eastern States" which are often viewed with deep, but usually jocular, suspicion. This attitude can be attributed mainly to isolation — reflected in the widely-held belief that Perth is "the world's most isolated capital city".

Chinese and Asian restaurants provide eat-in and takeaway services, and once again they cover the gamut from Europeanised 'faux' Asian food (soggy sweet-and-sour chicken) to the authentic. Most Australians prefer the genuine article, and the number of high-quality Asian restaurants is increasing.

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.

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.

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").