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The land that is now Australia was first discovered by Europeans in 1522 by the Portuguese explorer Cristóvão de Mendonça, but it was only in the 17th century that the island continent became the subject of European exploration, with several expeditions sighting Terra Australis: The Dutch explorer Willem Jansz (1606), the Portuguese explorer Luis Vaez de Torres in Spanish service (1607), and the Dutch explorers Jan Carstensz (1623), Dirk Hartog and Abel Tasman (1642), after whom is named the island of Tasmania, but which he himself originally named after Anthoonij van Diemenslandt.

The name Australia derives from Latin australis meaning southern, and dates back to 2nd century legends of an "unknown southern land" (ie. terra australis incognita). The English explorer Matthew Flinders named the land Terra Australis which was later abbreviated to the current form. Previously, when the Dutch explored the area they named it Nova Hollandicus or New Holland.

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.

The Commonwealth of Australia is a constitutional monarchy: Queen Elizabeth II is the Queen of Australia, a role distinct and separate from her position as Elizabeth II of the United Kingdom, and is considered to be the head of state, although that term is found nowhere in the Constitution or the law. The Queen is nominally represented by the Governor-General - in practice virtually the entire constitutional role of the monarch is performed independently by the Governor-General. Under the Australian Constitution the role of the monarch is almost entirely ceremonial. Although the constitution theoretically gives very extensive executive power to the Governor-General, these powers are virtually never used directly, and are delegated to the Cabinet, whose members are chosen by the governing party or by the Prime Minister alone, from amongst the current members of the parliament.

The Commonwealth of Australia is governed as a parliamentary constitutional monarchy. It is geographically the sixth-largest country in the world, the only one to occupy an entire continent, and the largest in the region of Australasia/Oceania. Australia includes a number of secondary islands the largest of which is Tasmania, which is an Australian State.

The ABC has made an impressive contribution to television drama with immensely popular series like "Brides of Christ" and in comedy, with the 1970's hits "Aunty Jack" and "The Norman Gunston Show" and most recently "Kath & Kim".

Although education is not a federal concern, government grants have aided in the establishment of numerous state universities including the University of Sydney (1850), the University of Melbourne (1853), the University of Adelaide (1874), the University of Tasmania (in Hobart, 1890), the University of Queensland (in Brisbane, 1909), and the University of Western Australia (in Perth, 1911).

The Australian aborigines , estimated to number as many as 350,000 at the time of the Europeans' arrival, was numbered at 386,049 (including Torres Strait Islanders, who are of Papuan descent) in 1996. Although still more rural than the general population, the aboriginal population has become more urbanized, with some two thirds living in cities. New South Wales and Queensland account for just over half of the Australian aboriginal population. In Tasmania the aboriginal population was virtually wiped out in the 19th century.

Emigration now also plays a role in changing Australian demographics. The term, Australian Diaspora, refers to the 850,000 Australian citizens who today live outside Australia. This phenomena is relatively new in Australia's history, estimated as having occurred over the last 40 years. Awareness of this demographic (almost 5% of the Australian population) is growing and supported by government initiates.

The most popular spectator sport in Perth is Australian Rules football. Two teams in the Australian Football League (AFL) are based in Perth: the West Coast Eagles and the Fremantle Football Club (or "The Dockers").