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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.

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.

According to Reporters Without Borders in 2004, Australia is in 41st position on a list of countries ranked by Press Freedom; well behind New Zealand (9th) and United Kingdom (28th). With the Howard government taking control of the Senate in mid-2005 after the 2004 election, media ownership regulations are likely to be relaxed so as to allow the further concentration of media ownership in the hands of a couple of entities.

Australia has a highly concentrated ownership of media companies. Newspapers are dominated by two companies, News Corporation and John Fairfax Holdings. News Corporation publishes the only daily national newspaper, The Australian, as well as a daily newspaper in every capital city except Perth. Its holdings include The Daily Telegraph (Sydney), Herald Sun (Melbourne), The Courier-Mail (Brisbane) and The Advertiser (Adelaide).

With a population of approx. 170,000 people in the city proper (known as the "city of Sydney") and a metropolitan area population exceeding 4 million, the Sydney metropolis is the larger of the two main financial, transport, trade and cultural centres of Australia (the other being Melbourne, Sydney's long term rival to the title of pre-eminent Australian city).