Claim: Cate Blanchett participated on stage in a theater production while in Australia.

Sydney is the state capital of New South Wales and the most populous city in Australia and Oceania . Located on Australia 's east coast , the metropolis surrounds the world 's largest natural harbour , and sprawls towards the Blue Mountains to the west . Residents of Sydney are known as `` Sydneysiders '' . Sydney is the location of the secondary official residences of the Governor-General of Australia and the Prime Minister of Australia , Admiralty House and Kirribilli House respectively .   The Sydney area has been inhabited by indigenous Australians for at least 30,000 years . The first British settlers , led by Captain Arthur Phillip , arrived in 1788 to found Sydney as a penal colony , the first European settlement in Australia . Since convict transportation ended in the mid-19th century , the city has transformed from a colonial outpost into a major global cultural and economic centre . As at June 2016 Sydney 's estimated population was 5,005,358 . In the , 34 percent of the population reported having been born overseas , representing many different nationalities and making Sydney one of the most multicultural cities in the world . There are more than 250 different languages spoken in Sydney and about one-third of residents speak a language other than English at home .   Despite being one of the most expensive cities in the world , the 2014 Mercer Quality of Living Survey ranks Sydney tenth in the world in terms of quality of living , making it one of the most livable cities . It is classified as an Alpha + World City by the Globalization and World Cities Research Network , indicating its influence in the region and throughout the world . Ranked eleventh in the world for economic opportunity , Sydney has an advanced market economy with strengths in finance , manufacturing and tourism . Its gross regional product was $ 337 billion in 2013 , the largest in Australia . There is a significant concentration of foreign banks and multinational corporations in Sydney and the city is promoted as one of Asia Pacific 's leading financial hubs .   In addition to hosting events such as the 2000 Summer Olympics , Sydney is amongst the top fifteen most-visited cities in the world , with millions of tourists coming each year to see the city 's landmarks . Its natural features include Sydney Harbour , the Royal National Park , and the Royal Botanic Garden . Man-made attractions such as the Sydney Opera House , Sydney Tower and the Sydney Harbour Bridge are also well known to international visitors .