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Sydney is located in a coastal basin between the Pacific Ocean to the east and the Blue Mountains to the west. Sydney features the largest natural harbour in the world, Port Jackson, and also enjoys more than 70 beaches, including the famous Bondi Beach.

American-style chain stores are common including Subway, Pizza Hut, KFC, Burger King (known as Hungry Jacks due to a trademark issue), and of course McDonalds (commonly called Maccas by locals). An alternative to the US imports is offered by the Australian chicken fastfood chain Red Rooster, and by the corner Pizza shops, charcoal chicken stores, fish and chip shops and a wide range of small enterprises. Many of these sell high-quality food for reasonable prices, but the only way to find the good ones is to try them.

Canberra (pronounced CAN-bruh , CAN-berra, Can-BER-ra or Can-buh-ruh) is Australia's capital city and largest inland city (population 311,000). It is located at the northern end of the Australian Capital Territory, (ACT; population 339,000). Canberra is the 7th most populous city in the country, though it is smaller than any of the state capitals except Hobart.

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.

On 1 January 1901, federation of the Colonies was completed after a 10 year gestation period, and the Commonwealth of Australia was born, as a dominion of the British Empire. The Australian Capital Territory was separated from New South Wales in 1911, to provide a neutral place for the proposed new federal capital of Canberra (the initial capital having been Melbourne). Although Australia had become independent, the British government retained some powers over Australia until the Statute of Westminster in 1931, and the theoretical authority of the British Parliament over individual states was not completely severed until the passing of the Australia Act in 1986. The original constitution gave the federal government power to make laws relating to any race of people except Aborigines. In 1967, a referendum supported by more than ninety per cent of voters gave the federal government the right to enact laws to protect Aboriginal people and to count them in the census.

Australia has a prosperous Western-style capitalist economy, with a per capita GDP at the level of the four dominant West European economies; its developed market economy is dominated by its services sector (65% of GDP), yet it is the agricultural and mining sectors (7% of GDP combined) that account for the bulk (58%) of Australia's goods and services exports.

Australia is a constitutional monarchy, with Elizabeth II reigning as 'Queen of Australia'. In 1999, a referendum was held on the question of constitutional change to a republic, with an appointed President replacing the Queen as head of state, but this was rejected. Various surveys held before and since the referendum suggest that the majority of Australians favour some form of republic, and hence many people ascribe the negative result of the referendum to dissatisfaction with the particular republican model that was proposed.