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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.

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.

Darwin has a tropical climate with distinct wet and dry seasons. The dry season runs from May to September, in the coolest months of June and July daily temperature range is 19 to 30°C. In the Wet season is associated with tropical cyclones and monsoon rains, the majority of rainfall occurs between December and March, thunderstorms are common and humidity is regularly over 70 per cent.

Australia's economic development was slow at first and based on the export of wool. This all changed with the discovery of gold in 1851 and mining has, overall, been the most important sector of the Australian economy. By the late 20th century, Australia had a prosperous Western-style mixed economy, with a per capita GDP on par with the four dominant Western European economies. In recent years, the Australian economy has been resilient in the face of global economic downturn, with steady growth. Rising output in the domestic economy has been offsetting the global slump, and business and consumer confidence remains robust. Australia's emphasis on reforms is another key factor behind the economy's strength. In the 1980s, the Labor Party, led by Prime Minister Bob Hawke and Treasurer Paul Keating, played a crucial role in modernizing Australia's economy.