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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.

Much of Australia's culture is derived from European and more recently American roots, but distinctive Australian features have evolved from the environment, aboriginal culture, and the influence of Australia's neighbours. The vigor and originality of the arts in Australia—films, opera, music, painting, theater, dance, and crafts—are achieving international recognition.

Until the late 1960s, many have argued that Australian popular music was largely indistinguishable from imported music: British to begin with, then gradually more and more American in the post-war years. The sudden arrival of the 1960s underground movement into the mainstream in the early 1970s changed Australian music permanently: Skyhooks were far from the first people to write songs in Australia, by Australians, about Australia, but they were the first ones ever to make money doing it. The two best-selling albums ever made (at that time) put Australian music on the map. Within a few years, the novelty had worn off and it became commonplace to hear distinctively Australian lyrics and sometimes sounds side-by-side with the imitators and the imports.

Rich in natural resources, Australia is a major exporter of agricultural products, minerals, metals, and fossil fuels. Commodities account for 57% of the value of total exports, so that a downturn in world commodity prices can have a big impact on the economy. The government is pushing for increased exports of manufactured goods, but competition in international markets continues to be severe.

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.

Perth is set on the Swan River, so named because of the native black swans. It is a sprawling city, extending to Joondalup in the north, Mandurah in the south and Mundaring in the east. The coastal suburbs take advantage of Perth's oceanside location and clean beaches. To the east, the city is bordered by a low escarpment called the Darling Scarp. Perth is on generally flat, rolling land - largely due to the high amount of sandy soils and deep bedrock.

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.

The exact date of the first human habitation of Australia is still a subject of considerable research. There is strong scientific evidence for a presence around 50,000 years ago, a period of massive ecological upheaval in Australia which is believed to be consistent with human colonisation. However, there is some speculation about considerably earlier arrivals, even as far as 100,000 or more years ago. These first Australians were the remote ancestors of the current Australian Aborigines, and arrived via land bridges and navigation of significant sea crossings from present-day Southeast Asia.

Since 1996, the Coalition government, led by Prime Minister John Howard, has continued to implement microeconomic reform policies. Some have claimed that the deregulation of the labour market during this period has resulted in a needed flexibility in the labour force. Others have criticised these deregulations as having a negative impact on worker's wages, safety and health grounds. Legislation introduced during this period sought to reduce union involvement and power, and has preferred to emphasise enterprise bargaining (a tendency towards wage bargaining). Also during this period, the Coalition government deregulated numerous other industries, including the telecommunications sector, and privatised many of the pre-existing natural monopolies.