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Immigration has been a major factor in Australia's development since the beginning of European settlement in 1788. For generations, most settlers came from Britain and Ireland, and the people of Australia are still predominantly of British or Irish origin, with a culture and outlook similar to that of the United Kingdom and the United States.

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.

Alice Springs is best known outside the region as the setting of the Nevil Shute novel A Town Like Alice, and because of its proximity to Uluru, formerly known as Ayers Rock, the monolithic hill that is one of Australia's best-known natural landmarks as well as an important focus of Aboriginal culture and beliefs.

Melbourne was the only city in the Southern Hemisphere in which the Three Tenors (Luciano Pavarotti, Plácido Domingo and José Carreras) performed on their world tour in 1997, and the only city in the world to host the Kiss Symphony, a combined performance of the rock band KISS and the Melbourne Symphony Orchestra in 2003.

Debate about the role of the ABC continues, as many assign it a marginal role, and claim that American-influenced commercial TV and radio stations are far more popular choices. These critics claim that Australian children grow up watching Sesame Street and The Simpsons, eating fries at McDonalds, wearing baseball caps, speaking American slang, and some have never heard of Blinky Bill or the Magic Pudding. Television ratings are cited as backing this view, but it is less clear that these ratings tell the whole view. Certainly there have been many local television shows that have been successful, such as Skippy (in the late 1960s), Number 96 and The Box in the 1970s, Prisoner in the 1980s, and Neighbours and Home and Away (in the 1980s and 1990s), which have sometimes been even more successful abroad.

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.

Australian literature began soon after the establishment of the country by Europeans. Early popular works tended to be of the 'ripping yarn' variety, telling tales of derring-do against the new frontier of the Australian outback. Writers such as Rolf Boldrewood, Marcus Clarke and Joseph Furphy embodied these stirring ideals in their tales and, particularly the latter, tried to accurately record the vernacular language of the common Australian. These novelists also give valuable insights into the penal colonies which helped form the country and also the early rural settlements. The transportation of prisoners, emigration to this once remote nation and the persecution and prejudice suffered by its indigenous peoples all contribute to a sense of alienation and exile which can be seen to run through at least the early writings of Australia.