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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.

Two of Australia's most traditional takeaway dishes are the meat pie and sausage roll. These come in varying grades, ranging from the mass-produced factory outputs of Four-and-Twenty and Big Ben, sold on every street corner in milk bars, through to gourmet pies sold by specialist pie shops. There is an annual competition to find the 'Great Australian Meat Pie', and the winners are greatly removed from their fat-laden antecedents.

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.

Although Australia has scarcely more than two persons per square kilometer of total land area, this raw figure is highly misleading: most of the continent is desert or semi-desert and of no agricultural value. In consequence, Australia is one of the world's most urbanized countries: less than 15% of the population live in rural areas.

Chinese and Asian restaurants provide eat-in and takeaway services, and once again they cover the gamut from Europeanised 'faux' Asian food (soggy sweet-and-sour chicken) to the authentic. Most Australians prefer the genuine article, and the number of high-quality Asian restaurants is increasing.

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.

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.

Australia is home to the only three extant monotreme species in the world - two echidnas and the Platypus. The only placental mammals naturally found on the Australian mainland are bats; a large number of rodents which arrived only about 5 million years ago, and the Dingo, which was introduced to Australia by humans perhaps 7000 years ago.

Australia is home to the Great Artesian Basin - an important source of water for people and cattle in the parched outback. This basin is the world's largest and deepest fresh water basin.