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Australia's myths originate in the outback, in the drovers and squatters and people of the barren, dusty plains, yet very few Australians live in the outback, or even in the milder countryside that is never more than an hour or two's drive from the cities in which they live. This was true even of the Australia of a century ago - since the gold rush of the 1850s, most Australians have been city-bound. Nevertheless, after a century or more spent absorbing the bush yarns of Henry Lawson and the poetry of Banjo Paterson from the comfort of armchairs in the suburbs, the myths are real.

Adelaide hosted the Formula 1 Grand Prix from 1985 on 1995 on a street circuit in the city's eastern parklands. The Formula 1 Grand Prix became a source of pride and losing the Grand Prix to arch-rival Melbourne under questionable circumstances left a void that has since been filled for the most part with the highly successful Clipsal 500 V8 Supercar race event, held on a modified version of the same circuit.

Traditional Australian cuisine was based on English cooking brought to the country by the first European settlers. This cuisine generally consisted of Sunday roasts, grilled chops, and other forms of meat, and was generally accompanied by vegetables (often known colloquially as "three veg") such as mashed potatoes, beans, peas, and carrots (often served soggy or overcooked). This trend has declined considerably with the multicultural emphasis of Australian culture over the last thirty to fifty years. However, the barbeque or "barbie" remains an important part of Australian life.

Melbourne is home to nine of the sixteen teams in the Australian Football League, whose five Melbourne games per week attract an average 35,000 people per game. Melbourne hosts the Australian Open tennis, one of the four Grand Slam tournaments; the Melbourne Cup - the most prestigious handicap horse race in the world; the hugely popular 'Boxing Day' cricket test match held each year from 26-30 December at the Melbourne Cricket Ground (a massive arena that can hold up to 100,000 spectators); the Australian Grand Prix Formula One championship.

The Commonwealth of Australia is governed as a parliamentary constitutional monarchy. It is geographically the sixth-largest country in the world, the only one to occupy an entire continent, and the largest in the region of Australasia/Oceania. Australia includes a number of secondary islands the largest of which is Tasmania, which is an Australian State.

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.

In common with many other developed countries, Australia is currently experiencing a demographic shift towards an older population, with more people retiring and fewer people of working age. Similarly, a large number of Australian citizens (950,000 as of 2004) live outside of their home country. This number (almost 5%) represents a higher per capita percentage of overseas residents than many other countries including the United States. This phenomenon was, until recently, given little attention by the Australian government and media, but the term Australian Diaspora has now joined the Australian vocabulary.

Australia is a constitutional monarchy, with Elizabeth II reigning as 'Queen of Australia'. In 1999, a referendum was held on the question of constitutional change to a republic, with an appointed President replacing the Queen as head of state, but this was rejected. Various surveys held before and since the referendum suggest that the majority of Australians favour some form of republic, and hence many people ascribe the negative result of the referendum to dissatisfaction with the particular republican model that was proposed.