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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.

Hobart is internationally famous among the yachting fraternity as the finish of the Sydney to Hobart Yacht Race which starts in Sydney on Boxing Day (the day after Christmas Day). The arrival of the yachts is celebrated as part of the Hobart Summer Festival, a food and wine festival beginning just after Christmas and ending in mid January.

The Australian aborigines , estimated to number as many as 350,000 at the time of the Europeans' arrival, was numbered at 386,049 (including Torres Strait Islanders, who are of Papuan descent) in 1996. Although still more rural than the general population, the aboriginal population has become more urbanized, with some two thirds living in cities. New South Wales and Queensland account for just over half of the Australian aboriginal population. In Tasmania the aboriginal population was virtually wiped out in the 19th century.

Although Australia was initially largely of British origin, and by the early 21st century was an overwhelmingly city-based society, receiving a large proportion of its cultural communication from either Hollywood and American TV networks, or home-grown productions that some claim are merely imitators.

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.