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By far the largest part of Australia is desert or semi-arid — 40% of the land mass is covered by sand dunes. Only the south-east and south-west corners have a temperate climate and moderately fertile soil. The northern part of the country has a tropical climate: part is tropical rainforests, part grasslands, and part desert. The Great Barrier Reef, the world's largest coral reef, lies a short distance off the north-east coast and extends for over 1,200 kilometres. Uluru (until 1986 known as Ayers Rock), is the second largest monolith in the world and is located in central Australia (the largest being Mount Augustus in Western Australia). The largest city in the world by area (not by population) is Mount Isa in northern Queensland.

Melbourne has twice ranked first in a survey by The Economist of "The World's Most Livable Cities", once in 2002, and again in 2004. It is sometimes classed as a "world city"; one study group ranks Melbourne, on the basis of relative availability of specialised "advanced services" as a "minor world city" comparable to cities such as Vancouver, Osaka, and Prague.

The land that is now Australia was first discovered by Europeans in 1522 by the Portuguese explorer Cristóvão de Mendonça, but it was only in the 17th century that the island continent became the subject of European exploration, with several expeditions sighting Terra Australis: The Dutch explorer Willem Jansz (1606), the Portuguese explorer Luis Vaez de Torres in Spanish service (1607), and the Dutch explorers Jan Carstensz (1623), Dirk Hartog and Abel Tasman (1642), after whom is named the island of Tasmania, but which he himself originally named after Anthoonij van Diemenslandt.

In 1901, Australia adopted a federal constitution and became a self-governing dominion of the British Empire. Australian troops took part in both world wars. Since World War II Australia has been transformed by a massive immigration programme. Australia remains a constitutional monarchy with Queen Elizabeth II as head of state: a referendum to establish a republic was defeated in 1999.

Australians have traditionally had a very strong "underdog" attitude, that is they will support those whom appear to have the lesser hand, so long as Australia is not involved. This can be seen greatly from an occurance during the 2003 Rugby World Cup, where a Georgian Rugby Team arrived in Perth with a crowd of Perth based supporters cheering them on and welcoming them.

Emigration now also plays a role in changing Australian demographics. The term, Australian Diaspora, refers to the 850,000 Australian citizens who today live outside Australia. This phenomena is relatively new in Australia's history, estimated as having occurred over the last 40 years. Awareness of this demographic (almost 5% of the Australian population) is growing and supported by government initiates.

Despite being considered by some almost an anathema to literature the Australian born business man Rupert Murdoch is one of the most powerful men in media worldwide. His influence on literature includes the ownership of numerous newspapers in several countries and the publishing firm HarperCollins.