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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.

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.

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.

New Zealanders are granted Special Category Visas on arrival in Australia, which allow them to remain in Australia to live or work indefinitely. However, New Zealand citizens are excluded from government subsidised tertiary education or other advantages granted to Australian citizens and permanent residents. New rules in 2001 divided New Zealanders living in Australia into two categories: those who were resident in Australia before 2001, and those who arrived in Australia after 2001. Those who were resident before 2001 may claim unemployment benefits after two years residence, as is the norm for permanent residents of other nationalities. New Zealanders who have arrived in Australia after 2001 are not entitled to any unemployment benefits at all, as is the norm for people living in Australia only on work permits.

Probably the most well known Australian food is Vegemite. Similar to the British Marmite it is a strong tasting, yeast extract spread, common in sandwiches or on toast. Some Australian sweets, such as the Violet Crumble chocolate bar, are manufactured in Australia and are sold within the country, as well as a few international places such as Hawaii. Tim Tams are a chocolate biscuit, generally only common in Australia.

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.

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.