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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.

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.

Immigration has been a major factor in Australia's development since the beginning of European settlement in 1788. For generations, most settlers came from Britain and Ireland, and the people of Australia are still predominantly of British or Irish origin, with a culture and outlook similar to that of the United Kingdom and the United States.

The sharing of animal and plant species between adjacent parts of Australia, Papua New Guinea, and Papua and nearby Indonesian islands point to early land bridges closed when sea levels rose. The historically traditional movement of people between these places in primitive sailing craft for trade and fishing, point to the possibility of Arab and Chinese traders to the northern islands learning of and then visiting the shores of the southern continent from as early as the 9th century. Maps compiled in Europe from the late 1400s show parts of the coastline.

The 1980s is regarded as perhaps a golden age of Australian cinema, with many wildly successful films, from the dark science fiction of Mad Max to the blatantly commercial Aussie-bloke fantasy of Crocodile Dundee, a film that defined Australia in the eyes of many foreigners despite having remarkably little to do with the lifestyle of most Australians. The indigenous film industry continues to produce a reasonable number of films each year, also many US producers have moved productions to Australian studios as they discover a pool of professional talent well below US costs. Notable productions include The Matrix and the Star Wars episodes II and III.

Australian television channels include two government owned national networks, three major commercial capital city networks, several regional commercial networks and independent stations that are generally affiliates of the major networks, and a handful of community stations.

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.