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The Commonwealth of Australia is a constitutional monarchy: Queen Elizabeth II is the Queen of Australia, a role distinct and separate from her position as Elizabeth II of the United Kingdom, and is considered to be the head of state, although that term is found nowhere in the Constitution or the law. The Queen is nominally represented by the Governor-General - in practice virtually the entire constitutional role of the monarch is performed independently by the Governor-General. Under the Australian Constitution the role of the monarch is almost entirely ceremonial. Although the constitution theoretically gives very extensive executive power to the Governor-General, these powers are virtually never used directly, and are delegated to the Cabinet, whose members are chosen by the governing party or by the Prime Minister alone, from amongst the current members of the parliament.

News Corporation was founded in Adelaide and its first newspaper was The News which was later merged with The Advertiser. John Fairfax Holdings owns The Sydney Morning Herald, The Age (Melbourne) and the most prominent financial newspaper, The Australian Financial Review. Rural and regional media is dominated by Rural Press Limited, with significant holdings in all States and Territories. Titles include The Canberra Times as well as The Land (New South Wales), Queensland Country Life, Stock and Land (Victoria), Stock Journal (South Australia) and Farm Weekly (Western Australia). Rural Press also has significant holdings in New Zealand and the United States.

Although Australia has scarcely more than two persons per square kilometer of total land area, this raw figure is highly misleading: most of the continent is desert or semi-desert and of no agricultural value. In consequence, Australia is one of the world's most urbanized countries: less than 15% of the population live in rural areas.

Australia has had a significant school of painting since the early days of European settlement, and Australians with international reputations include Sidney Nolan, Russell Drysdale, and Arthur Boyd—not to mention the prized work of many Aboriginal artists. Writers who have achieved world recognition include Thomas Keneally, Les Murray, Colleen McCullough, Nevil Shute, Morris West, Jill Ker Conway, Booker Prize winner Peter Carey and Nobel Prize winner Patrick White. Noted expatriate writers include Germaine Greer and Clive James, who are sometimes better known in the UK than they are in Australia.

American-style chain stores are common including Subway, Pizza Hut, KFC, Burger King (known as Hungry Jacks due to a trademark issue), and of course McDonalds (commonly called Maccas by locals). An alternative to the US imports is offered by the Australian chicken fastfood chain Red Rooster, and by the corner Pizza shops, charcoal chicken stores, fish and chip shops and a wide range of small enterprises. Many of these sell high-quality food for reasonable prices, but the only way to find the good ones is to try them.

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.

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.

Melbourne's own vibrant music scene has fostered many internationally renowned artists and musicians, with links to Nick Cave, Crowded House, AC/DC, John Farnham, Graeme Bell and Kylie Minogue.