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Canberra (pronounced CAN-bruh , CAN-berra, Can-BER-ra or Can-buh-ruh) is Australia's capital city and largest inland city (population 311,000). It is located at the northern end of the Australian Capital Territory, (ACT; population 339,000). Canberra is the 7th most populous city in the country, though it is smaller than any of the state capitals except Hobart.

The British Crown Colony of New South Wales began by the establishment of a settlement (later to become Sydney) in Port Jackson by Captain Arthur Phillip on January 26, 1788. The date of arrival of the First Fleet was later to become the date of Australia's national day, Australia Day.

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.

Australia is unusual because the animal population evolved largely out of contact with the other continents. A very high percentage of Australian animals are endemic (found nowhere else) including about 70% of its birds and 95% of its mammals. Over time, marsupials filled most of the ecological niches that are occupied by placental mammals in most other parts of the world.

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.

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.

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.

Australia has a highly concentrated ownership of media companies. Newspapers are dominated by two companies, News Corporation and John Fairfax Holdings. News Corporation publishes the only daily national newspaper, The Australian, as well as a daily newspaper in every capital city except Perth. Its holdings include The Daily Telegraph (Sydney), Herald Sun (Melbourne), The Courier-Mail (Brisbane) and The Advertiser (Adelaide).

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.

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.