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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.

English is the main official and spoken language in Australia, although some of the surviving Aboriginal communities maintain their native languages. A considerable number of first and sometimes second-generation migrants are bilingual; languages such as Italian, Cantonese and Greek are spoken in many communities.

Traditional "high culture" gains small attention from much of the population, it thrives nevertheless, with excellent galleries (even in surprisingly small towns); a rich tradition in ballet, enlivened by the legacy of Dame Margot Fonteyn and Sir Robert Helpmann; a strong national opera company based in Sydney; and good symphony orchestras in all capital cities--the Melbourne and Sydney symphony orchestras are said to be worthy of comparison with any.

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. There are excellent art galleries (even in surprisingly small towns); a rich tradition in ballet, enlivened by the legacy of Dame Margot Fonteyn and Sir Robert Helpmann; a strong national opera company, Opera Australia, made prominent by the world renowned diva Dame Joan Sutherland; and symphony orchestras in all capital cities, in particular the Melbourne and Sydney symphony orchestras. In ths field, conductor Sir Charles Mackerras has achieved international renown.

Australia has been inhabited for at least 50,000 years, since the remote ancestors of the current Australian Aboriginal people arrived from Southeast Asia. The land was not discovered by Europeans until the 17th century. It was claimed for Britain in 1770, and first colonised in 1788 as a penal colony. Five other colonies, some penal and some free, were founded in the early 19th century.

Australia is home to perhaps the oldest continuous artistic traditions in the world - that is, those of the Aboriginal Australians, an artistic tradition that began to receive international recognition in the late 20th century. It has also produced notable artists coming out of Western traditions whose most distinctively Australian feature is the gradual development of a way to represent the equally distinctive Australian landscape.

Since the recession "Australia had to have" (P. Keating) in the early 1990s, the Australian economy has not suffered a recession or "trough" in the business cycle in 13 years. Even the downturn of the early 2000s did not affect its consistent GDP growth. As of October 2004, unemployment had fallen to a level of 5.2%, the lowest level since the late 1970s.

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.

Sydney is the capital city of the Australian state of New South Wales and Australia's largest and oldest city, founded in 1788.