Australia

**Australia**, officially known as the **Commonwealth of Australia**, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. It is the largest country in Oceania and the world's sixth-largest country by total area. The population of 26 million is highly urbanised and heavily concentrated on the eastern seaboard. Australia's capital is Canberra, and its largest city is Sydney. The country's other major metropolitan areas are Melbourne, Brisbane, Perth, and Adelaide.

Indigenous Australians inhabited the continent for about 65,000 years prior to the first arrival of Dutch explorers in the early 17th century, who named it New Holland. In 1770, Australia's eastern half was claimed by Great Britain and initially settled through penal transportation to the colony of New South Wales from 26 January 1788, a date which became Australia's national day. The population grew steadily in subsequent decades, and by the time of an 1850s gold rush, most of the continent had been explored by European settlers and an additional five self-governing crown colonies established. On 1 January 1901, the six colonies federated, forming the Commonwealth of Australia. Australia has since maintained a stable liberal democratic political system that functions as a federal parliamentary constitutional monarchy, comprising six states and ten territories.

Australia is the oldest, flattest, and driest inhabited continent, with the least fertile soils. It has a landmass of 7,617,930 square kilometres (2,941,300 sq mi). A megadiverse country, its size gives it a wide variety of landscapes, with deserts in the centre, tropical rainforests in the north-east, and mountain ranges in the south-east. Australia generates its income from various sources, including mining-related exports, telecommunications, banking, manufacturing, and international education.

Australia is a highly developed country, with the world's fourteenth-largest economy. It has a high-income economy, with the world's tenth-highest per capita income. It is a regional power and has the world's thirteenth-highest military expenditure. Immigrants account for 30% of the population, the highest proportion in any country with a population over 10 million. Having the third-highest Human Development Index and the eighth-highest ranked democracy globally, the country ranks highly in quality of life, health, education, economic freedom, civil liberties, and political rights, with all its major cities faring well in global comparative livability surveys. Australia is a member of the United Nations, G20, Commonwealth of Nations, ANZUS, Organisation for Economic Co-operation and Development (OECD), World Trade Organization, Asia-Pacific Economic Cooperation, Pacific Islands Forum, and the ASEAN Plus Six mechanism.

## Name

Main article: Name of Australia

The name *Australia* (pronounced /əˈstreɪliə/ in Australian English) is derived from the Latin *Terra Australis* ("southern land"), a name used for a hypothetical continent in the Southern Hemisphere since ancient times. When Europeans first began visiting and mapping Australia in the 17th century, the name *Terra Australis* was naturally applied to the new territories.

Until the early 19th century, Australia was best known as "New Holland", a name first applied by the Dutch explorer Abel Tasman in 1644 (as *Nieuw-Holland*) and subsequently anglicised. *Terra Australis* still saw occasional usage, such as in scientific texts. The name *Australia* was popularised by the explorer Matthew Flinders, who said it was "more agreeable to the ear, and an assimilation to the names of the other great portions of the earth". Several famous early cartographers also made use of the word Australia on maps. Gerardus Mercator (1512–1594) used the phrase *climata australia* on his double cordiform map of the world of 1538, as did Gemma Frisius (1508–1555), who was Mercator's teacher and collaborator, on his own cordiform wall map in 1540. Australia appears in a book on astronomy by Cyriaco Jacob zum Barth published in Frankfurt-am-Main in 1545.

The first time that *Australia* appears to have been officially used was in April 1817, when Governor Lachlan Macquarie acknowledged the receipt of Flinders' charts of Australia from Lord Bathurst. In December 1817, Macquarie recommended to the Colonial Office that it be formally adopted. In 1824, the Admiralty agreed that the continent should be known officially by that name. The first official published use of the new name came with the publication in 1830 of *The Australia Directory* by the Hydrographic Office.

Colloquial names for Australia include "Oz" and "the Land Down Under" (usually shortened to just "Down Under"). Other epithets include "the Great Southern Land", "the Lucky Country", "the Sunburnt Country", and "the Wide Brown Land". The latter two both derive from Dorothea Mackellar's 1908 poem "My Country".

### Prehistory

Further information: Indigenous Australians

Aboriginal rock art in the Kimberley region of Western Australia

Human habitation of the Australian continent is known to have begun at least 65,000 years ago, with the migration of people by land bridges and short sea-crossings from what is now Southeast Asia. The Madjedbebe rock shelter in Arnhem Land is recognised as the oldest site showing the presence of humans in Australia. The oldest human remains found are the Lake Mungo remains, which have been dated to around 41,000 years ago. These people were the ancestors of modern Indigenous Australians. Aboriginal Australian culture is one of the oldest continual cultures on earth.

At the time of first European contact, most Indigenous Australians were hunter-gatherers with complex economies and societies. Recent archaeological finds suggest that a population of 750,000 could have been sustained. Indigenous Australians have an oral culture with spiritual values based on reverence for the land and a belief in the Dreamtime. The Torres Strait Islanders, ethnically Melanesian, obtained their livelihood from seasonal horticulture and the resources of their reefs and seas. The northern coasts and waters of Australia were visited sporadically by Makassan fishermen from what is now Indonesia.

### European arrival

See also: European exploration of Australia

Portrait of Captain James Cook, the first European to map the eastern coastline of Australia in 1770

The first recorded European sighting of the Australian mainland, and the first recorded European landfall on the Australian continent, are attributed to the Dutch. The first ship and crew to chart the Australian coast and meet with Aboriginal people was the *Duyfken* captained by Dutch navigator, Willem Janszoon. He sighted the coast of Cape York Peninsula in early 1606, and made landfall on 26 February at the Pennefather River near the modern town of Weipa on Cape York. Later that year, Spanish explorer Luís Vaz de Torres sailed through, and navigated, Torres Strait islands. The Dutch charted the whole of the western and northern coastlines and named the island continent "New Holland" during the 17th century, and although no attempt at settlement was made, a number of shipwrecks left men either stranded or, as in the case of the *Batavia* in 1629, marooned for mutiny and murder, thus becoming the first Europeans to permanently inhabit the continent. William Dampier, an English explorer and privateer, landed on the north-west coast of New Holland in 1688 (while serving as a crewman under pirate Captain John Read) and again in 1699 on a return trip. In 1770, James Cook sailed along and mapped the east coast, which he named New South Wales and claimed for Great Britain.

With the loss of its American colonies in 1783, the British Government sent a fleet of ships, the "First Fleet", under the command of Captain Arthur Phillip, to establish a new penal colony in New South Wales. A camp was set up and the Union flag raised at Sydney Cove, Port Jackson, on 26 January 1788, a date which later became Australia's national day, Australia Day. Most early convicts were transported for petty crimes and assigned as labourers or servants upon arrival. While the majority settled into colonial society once emancipated, convict rebellions and uprisings were also staged, but invariably suppressed under martial law. The 1808 Rum Rebellion, the only successful armed takeover of government in Australia, instigated a two-year period of military rule.

The indigenous population declined for 150 years following settlement, mainly due to infectious disease. Thousands more died as a result of frontier conflict with settlers. A government policy of "assimilation" beginning with the *Aboriginal Protection Act 1869* resulted in the removal of many Aboriginal children from their families and communities—referred to as the Stolen Generations—a practice which also contributed to the decline in the indigenous population. As a result of the 1967 referendum, the Federal government's power to enact special laws with respect to a particular race was extended to enable the making of laws with respect to Aboriginals. Traditional ownership of land ("native title") was not recognised in law until 1992, when the High Court of Australia held in *Mabo v Queensland (No 2)* that the legal doctrine that Australia had been *terra nullius* ("land belonging to no one") did not apply to Australia at the time of British settlement.

### Colonial expansion

Tasmania's Port Arthur penal settlement is one of eleven UNESCO World Heritage-listed Australian Convict Sites.

The expansion of British control over other areas of the continent began in the early 19th century, initially confined to coastal regions. A settlement was established in Van Diemen's Land (present-day Tasmania) in 1803, and it became a separate colony in 1825. In 1813, Gregory Blaxland, William Lawson and William Wentworth crossed the Blue Mountains west of Sydney, opening the interior to European settlement. The British claim was extended to the whole Australian continent in 1827 when Major Edmund Lockyer established a settlement on King George Sound (modern-day Albany, Western Australia). The Swan River Colony was established in 1829, evolving into the largest Australian colony by area, Western Australia. In accordance with population growth, separate colonies were carved from parts of New South Wales: South Australia in 1836, New Zealand in 1841, Victoria in 1851, and Queensland in 1859. The Northern Territory was excised from South Australia in 1911. South Australia was founded as a "free province"—it was never a penal colony. Western Australia was also founded "free" but later accepted transported convicts, the last of which arrived in 1868, decades after transportation had ceased to the other colonies. By 1850, Europeans still had not entered large areas of the inland. Explorers remained ambitious to discover new lands for agriculture or answers to scientific enquiries.

A series of gold rushes beginning in the early 1850s led to an influx of new migrants from China, North America and mainland Europe, and also spurred outbreaks of bushranging and civil unrest. The latter peaked in 1854 when Ballarat miners launched the Eureka Rebellion against gold license fees. Between 1855 and 1890, the six colonies individually gained responsible government, managing most of their own affairs while remaining part of the British Empire. The Colonial Office in London retained control of some matters, notably foreign affairs, defence, and international shipping.

### Nationhood

The Last Post is played at an Anzac Day ceremony in Port Melbourne, Victoria. Similar ceremonies are held in many suburbs and towns.

On 1 January 1901, federation of the colonies was achieved after a decade of planning, consultation and voting. After the 1907 Imperial Conference, Australia and the other self-governing British colonies were given the status of "dominion" within the British Empire. The Federal Capital Territory (later renamed the Australian Capital Territory) was formed in 1911 as the location for the future federal capital of Canberra. Melbourne was the temporary seat of government from 1901 to 1927 while Canberra was being constructed. The Northern Territory was transferred from the control of the South Australian government to the federal parliament in 1911. Australia became the colonial ruler of the Territory of Papua (which had initially been annexed by Queensland in 1888) in 1902 and of the Territory of New Guinea (formerly German New Guinea) in 1920. The two were unified as the Territory of Papua and New Guinea in 1949 and gained independence from Australia in 1975.

In 1914, Australia joined Britain in fighting World War I, with support from both the outgoing Commonwealth Liberal Party and the incoming Australian Labor Party. Australians took part in many of the major battles fought on the Western Front. Of about 416,000 who served, about 60,000 were killed and another 152,000 were wounded. Many Australians regard the defeat of the Australian and New Zealand Army Corps (ANZACs) at Gallipoli as the birth of the nation—its first major military action. The Kokoda Track campaign is regarded by many as an analogous nation-defining event during World War II.

Britain's Statute of Westminster 1931 formally ended most of the constitutional links between Australia and the UK. Australia adopted it in 1942, but it was backdated to 1939 to confirm the validity of legislation passed by the Australian Parliament during World War II. The shock of Britain's defeat in Asia in 1942, followed soon after by the bombing of Darwin and other Japanese attacks, led to a widespread belief in Australia that an invasion was imminent, and a shift towards the United States as a new ally and protector. Since 1951, Australia has been a formal military ally of the US, under the ANZUS treaty.

After World War II, Australia encouraged immigration from mainland Europe. Since the 1970s and following the abolition of the White Australia policy, immigration from Asia and elsewhere was also promoted. As a result, Australia's demography, culture, and self-image were transformed. The *Australia Act 1986* severed the remaining constitutional ties between Australia and the UK. In a 1999 referendum, 55% of voters and a majority in every state rejected a proposal to become a republic with a president appointed by a two-thirds vote in both Houses of the Australian Parliament. There has been an increasing focus in foreign policy on ties with other Pacific Rim nations, while maintaining close ties with Australia's traditional allies and trading partners.

### General characteristics

Topographic map of Australia. Dark green represents the lowest elevation and dark brown the highest

Surrounded by the Indian and Pacific oceans, Australia is separated from Asia by the Arafura and Timor seas, with the Coral Sea lying off the Queensland coast, and the Tasman Sea lying between Australia and New Zealand. The world's smallest continent and sixth largest country by total area, Australia—owing to its size and isolation—is often dubbed the "island continent" and is sometimes considered the world's largest island. Australia has 34,218 kilometres (21,262 mi) of coastline (excluding all offshore islands), and claims an extensive Exclusive Economic Zone of 8,148,250 square kilometres (3,146,060 sq mi). This exclusive economic zone does not include the Australian Antarctic Territory. Apart from Macquarie Island, Australia lies between latitudes 9° and 44°S, and longitudes 112° and 154°E.

Australia's size gives it a wide variety of landscapes, with tropical rainforests in the north-east, mountain ranges in the south-east, south-west and east, and desert in the centre. The desert or semi-arid land commonly known as the outback makes up by far the largest portion of land. Australia is the driest inhabited continent; its annual rainfall averaged over continental area is less than 500 mm. The population density is 3.2 inhabitants per square kilometre, although a large proportion of the population lives along the temperate south-eastern coastline.

Heron Island, a coral cay in the southern Great Barrier Reef

The Great Barrier Reef, the world's largest coral reef, lies a short distance off the north-east coast and extends for over 2,000 kilometres (1,240 mi). Mount Augustus, claimed to be the world's largest monolith, is located in Western Australia. At 2,228 metres (7,310 ft), Mount Kosciuszko is the highest mountain on the Australian mainland. Even taller are Mawson Peak (at 2,745 metres or 9,006 feet), on the remote Australian external territory of Heard Island, and, in the Australian Antarctic Territory, Mount McClintock and Mount Menzies, at 3,492 metres (11,457 ft) and 3,355 metres (11,007 ft) respectively.

Eastern Australia is marked by the Great Dividing Range, which runs parallel to the coast of Queensland, New South Wales and much of Victoria. The name is not strictly accurate, because parts of the range consist of low hills, and the highlands are typically no more than 1,600 metres (5,249 ft) in height. The coastal uplands and a belt of Brigalow grasslands lie between the coast and the mountains, while inland of the dividing range are large areas of grassland and shrubland. These include the western plains of New South Wales, and the Mitchell Grass Downs and Mulga Lands of inland Queensland. The northernmost point of the east coast is the tropical Cape York Peninsula.

Uluru in the semi-arid region of Central Australia

The landscapes of the Top End and the Gulf Country—with their tropical climate—include forest, woodland, wetland, grassland, rainforest and desert. At the north-west corner of the continent are the sandstone cliffs and gorges of The Kimberley, and below that the Pilbara. The Victoria Plains tropical savanna lies south of the Kimberly and Arnhem Land savannas, forming a transition between the coastal savannas and the interior deserts. At the heart of the country are the uplands of central Australia. Prominent features of the centre and south include Uluru (also known as Ayers Rock), the famous sandstone monolith, and the inland Simpson, Tirari and Sturt Stony, Gibson, Great Sandy, Tanami, and Great Victoria deserts, with the famous Nullarbor Plain on the southern coast. The Western Australian mulga shrublands lie between the interior deserts and Mediterranean-climate Southwest Australia.

### Geology

Main article: Geology of Australia

Basic geological regions of Australia, by age

Lying on the Indo-Australian Plate, the mainland of Australia is the lowest and most primordial landmass on Earth with a relatively stable geological history. The landmass includes virtually all known rock types and from all geological time periods spanning over 3.8 billion years of the Earth's history. The Pilbara Craton is one of only two pristine Archaean 3.6–2.7 Ga (billion years ago) crusts identified on the Earth.

Having been part of all major supercontinents, the Australian continent began to form after the breakup of Gondwana in the Permian, with the separation of the continental landmass from the African continent and Indian subcontinent. It separated from Antarctica over a prolonged period beginning in the Permian and continuing through to the Cretaceous. When the last glacial period ended in about 10,000 BC, rising sea levels formed Bass Strait, separating Tasmania from the mainland. Then between about 8,000 and 6,500 BC, the lowlands in the north were flooded by the sea, separating New Guinea, the Aru Islands, and the mainland of Australia. The Australian continent is moving toward Eurasia at the rate of 6 to 7 centimetres a year.

The Australian mainland's continental crust, excluding the thinned margins, has an average thickness of 38 km, with a range in thickness from 24 km to 59 km. Australia's geology can be divided into several main sections, showcasing that the continent grew from west to east: the Archaean cratonic shields found mostly in the west, Proterozoic fold belts in the centre and Phanerozoic sedimentary basins, metamorphic and igneous rocks in the east.

The Australian mainland and Tasmania are situated in the middle of the tectonic plate and have no active volcanoes, but due to passing over the East Australia hotspot, recent volcanism has occurred during the Holocene, in the Newer Volcanics Province of western Victoria and southeastern South Australia. Volcanism also occurs in the island of New Guinea (considered geologically as part of the Australian continent), and in the Australian external territory of Heard Island and McDonald Islands. Seismic activity in the Australian mainland and Tasmania is also low, with the greatest number of fatalities having occurred in the 1989 Newcastle earthquake.

### Climate

Main article: Climate of Australia

Köppen climate types of Australia.

The climate of Australia is significantly influenced by ocean currents, including the Indian Ocean Dipole and the El Niño–Southern Oscillation, which is correlated with periodic drought, and the seasonal tropical low-pressure system that produces cyclones in northern Australia. These factors cause rainfall to vary markedly from year to year. Much of the northern part of the country has a tropical, predominantly summer-rainfall (monsoon). The south-west corner of the country has a Mediterranean climate. The south-east ranges from oceanic (Tasmania and coastal Victoria) to humid subtropical (upper half of New South Wales), with the highlands featuring alpine and subpolar oceanic climates. The interior is arid to semi-arid.

According to the Bureau of Meteorology's 2011 Australian Climate Statement, Australia had lower than average temperatures in 2011 as a consequence of a La Niña weather pattern; however, "the country's 10-year average continues to demonstrate the rising trend in temperatures, with 2002–2011 likely to rank in the top two warmest 10-year periods on record for Australia, at 0.52 °C (0.94 °F) above the long-term average". Furthermore, 2014 was Australia's third warmest year since national temperature observations commenced in 1910.

Water restrictions are frequently in place in many regions and cities of Australia in response to chronic shortages due to urban population increases and localised drought. Throughout much of the continent, major flooding regularly follows extended periods of drought, flushing out inland river systems, overflowing dams and inundating large inland flood plains, as occurred throughout Eastern Australia in 2010, 2011 and 2012 after the 2000s Australian drought.

Australia's carbon dioxide emissions per capita are among the highest in the world, lower than those of only a few other industrialised nations.

January 2019 was the hottest month ever in Australia with average temperatures exceeding 30 °C (86 °F).

The 2019–20 Australian bushfire season was Australia's worst bushfire season on record.

### Climate

Main article: Climate of Australia

Köppen climate types of Australia.

The climate of Australia is significantly influenced by ocean currents, including the Indian Ocean Dipole and the El Niño–Southern Oscillation, which is correlated with periodic drought, and the seasonal tropical low-pressure system that produces cyclones in northern Australia. These factors cause rainfall to vary markedly from year to year. Much of the northern part of the country has a tropical, predominantly summer-rainfall (monsoon). The south-west corner of the country has a Mediterranean climate. The south-east ranges from oceanic (Tasmania and coastal Victoria) to humid subtropical (upper half of New South Wales), with the highlands featuring alpine and subpolar oceanic climates. The interior is arid to semi-arid.

According to the Bureau of Meteorology's 2011 Australian Climate Statement, Australia had lower than average temperatures in 2011 as a consequence of a La Niña weather pattern; however, "the country's 10-year average continues to demonstrate the rising trend in temperatures, with 2002–2011 likely to rank in the top two warmest 10-year periods on record for Australia, at 0.52 °C (0.94 °F) above the long-term average". Furthermore, 2014 was Australia's third warmest year since national temperature observations commenced in 1910.

Water restrictions are frequently in place in many regions and cities of Australia in response to chronic shortages due to urban population increases and localised drought. Throughout much of the continent, major flooding regularly follows extended periods of drought, flushing out inland river systems, overflowing dams and inundating large inland flood plains, as occurred throughout Eastern Australia in 2010, 2011 and 2012 after the 2000s Australian drought.

Australia's carbon dioxide emissions per capita are among the highest in the world, lower than those of only a few other industrialised nations.

January 2019 was the hottest month ever in Australia with average temperatures exceeding 30 °C (86 °F).

The 2019–20 Australian bushfire season was Australia's worst bushfire season on record.

## Government and politics

Main articles: Government of Australia and Politics of Australia

Elizabeth II, Queen of Australia

David Hurley, Governor-General of Australia

Scott Morrison, Prime Minister of Australia

Australia is a federal parliamentary constitutional monarchy. The country has maintained a stable liberal democratic political system under its constitution, which is one of the world's oldest, since Federation in 1901. It is also one of the world's oldest federations, in which power is divided between the federal and state and territorial governments. The Australian system of government combines elements derived from the political systems of the United Kingdom (a fused executive, constitutional monarchy and strong party discipline) and the United States (federalism, a written constitution and strong bicameralism with an elected upper house), along with distinctive indigenous features.

The federal government is separated into three branches:

* Legislature: the bicameral Parliament, comprising the monarch (represented by the governor-general), the Senate, and the House of Representatives;
* Executive: the Federal Executive Council, which in practice gives legal effect to the decisions of the cabinet, comprising the prime minister and other ministers of state appointed by the governor-general on the advice of Parliament;
* Judiciary: the High Court of Australia and other federal courts, whose judges are appointed by the governor-general on advice of Parliament

Elizabeth II reigns as Queen of Australia and is represented in Australia by the governor-general at the federal level and by the governors at the state level, who by convention act on the advice of her ministers. Thus, in practice the governor-general acts as a legal figurehead for the actions of the prime minister and the Federal Executive Council. The governor-general does have extraordinary reserve powers which may be exercised outside the prime minister's request in rare and limited circumstances, the most notable exercise of which was the dismissal of the Whitlam Government in the constitutional crisis of 1975.

Parliament House, Canberra

In the Senate (the upper house), there are 76 senators: twelve each from the states and two each from the mainland territories (the Australian Capital Territory and the Northern Territory). The House of Representatives (the lower house) has 151 members elected from single-member electoral divisions, commonly known as "electorates" or "seats", allocated to states on the basis of population, with each original state guaranteed a minimum of five seats. Elections for both chambers are normally held every three years simultaneously; senators have overlapping six-year terms except for those from the territories, whose terms are not fixed but are tied to the electoral cycle for the lower house; thus only 40 of the 76 places in the Senate are put to each election unless the cycle is interrupted by a double dissolution.

Australia's electoral system uses preferential voting for all lower house elections with the exception of Tasmania and the ACT which, along with the Senate and most state upper houses, combine it with proportional representation in a system known as the single transferable vote. Voting is compulsory for all enrolled citizens 18 years and over in every jurisdiction, as is enrolment (with the exception of South Australia). The party with majority support in the House of Representatives forms the government and its leader becomes Prime Minister. In cases where no party has majority support, the Governor-General has the constitutional power to appoint the Prime Minister and, if necessary, dismiss one that has lost the confidence of Parliament.

There are two major political groups that usually form government, federally and in the states: the Australian Labor Party and the Coalition which is a formal grouping of the Liberal Party and its minor partner, the National Party. Within Australian political culture, the Coalition is considered centre-right and the Labor Party is considered centre-left. Independent members and several minor parties have achieved representation in Australian parliaments, mostly in upper houses. The Australian Greens are often considered the "third force" in politics, being the third largest party by both vote and membership.

The most recent federal election was held on 18 May 2019 and resulted in the Coalition, led by Prime Minister Scott Morrison, retaining government.

### States and territories

Main article: States and territories of Australia

A map of Australia's states and territories

Australia has six states—New South Wales (NSW), Queensland (QLD), South Australia (SA), Tasmania (TAS), Victoria (VIC) and Western Australia (WA)—and two major mainland territories—the Australian Capital Territory (ACT) and the Northern Territory (NT). In most respects, these two territories function as states, except that the Commonwealth Parliament has the power to modify or repeal any legislation passed by the territory parliaments.

Under the constitution, the states essentially have plenary legislative power to legislate on any subject, whereas the Commonwealth (federal) Parliament may legislate only within the subject areas enumerated under section 51. For example, state parliaments have the power to legislate with respect to education, criminal law and state police, health, transport, and local government, but the Commonwealth Parliament does not have any specific power to legislate in these areas. However, Commonwealth laws prevail over state laws to the extent of the inconsistency. In addition, the Commonwealth has the power to levy income tax which, coupled with the power to make grants to States, has given it the financial means to incentivise States to pursue specific legislative agendas within areas over which the Commonwealth does not have legislative power.

Each state and major mainland territory has its own parliament—unicameral in the Northern Territory, the ACT and Queensland, and bicameral in the other states. The states are sovereign entities, although subject to certain powers of the Commonwealth as defined by the Constitution. The lower houses are known as the Legislative Assembly (the House of Assembly in South Australia and Tasmania); the upper houses are known as the Legislative Council. The head of the government in each state is the Premier and in each territory the Chief Minister. The Queen is represented in each state by a governor; and in the Northern Territory, the administrator. In the Commonwealth, the Queen's representative is the governor-general.

The Commonwealth Parliament also directly administers the external territories of Ashmore and Cartier Islands, the Australian Antarctic Territory, Christmas Island, the Cocos (Keeling) Islands, the Coral Sea Islands, and Heard Island and McDonald Islands, as well as the internal Jervis Bay Territory, a naval base and sea port for the national capital in land that was formerly part of New South Wales. The external territory of Norfolk Island previously exercised considerable autonomy under the *Norfolk Island Act 1979* through its own legislative assembly and an Administrator to represent the Queen. In 2015, the Commonwealth Parliament abolished self-government, integrating Norfolk Island into the Australian tax and welfare systems and replacing its legislative assembly with a council. Macquarie Island is part of Tasmania, and Lord Howe Island of New South Wales.

### Foreign relations

Main article: Foreign relations of Australia

Australia's Minister for Foreign Affairs, Marise Payne.

Over recent decades, Australia's foreign relations have been driven by a close association with the United States through the ANZUS pact, and by a desire to develop relationships with Asia and the Pacific, particularly through ASEAN, the Pacific Islands Forum and the Pacific Community, of which Australia is a founding member. In 2005 Australia secured an inaugural seat at the East Asia Summit following its accession to the Treaty of Amity and Cooperation in Southeast Asia, and in 2011 attended the Sixth East Asia Summit in Indonesia. Australia is a member of the Commonwealth of Nations, in which the Commonwealth Heads of Government meetings provide the main forum for co-operation. Australia has pursued the cause of international trade liberalisation. It led the formation of the Cairns Group and Asia-Pacific Economic Cooperation.

Australia is a member of the Organisation for Economic Co-operation and Development and the World Trade Organization, and has pursued several major bilateral free trade agreements, most recently the Australia–United States Free Trade Agreement and Closer Economic Relations with New Zealand, with another free trade agreement being negotiated with China—the Australia–China Free Trade Agreement—and Japan, South Korea in 2011, Australia–Chile Free Trade Agreement, and as of November 2015 has put the Trans-Pacific Partnership before parliament for ratification.

Australia maintains a deeply integrated relationship with neighbouring New Zealand, with free mobility of citizens between the two countries under the Trans-Tasman Travel Arrangement and free trade under the Australia–New Zealand Closer Economic Relations Trade Agreement. New Zealand, Canada and the United Kingdom are the most favourably viewed countries in the world by Australian people, sharing a number of close diplomatic, military and cultural ties with Australia.

Along with New Zealand, the United Kingdom, Malaysia and Singapore, Australia is party to the Five Power Defence Arrangements, a regional defence agreement. A founding member country of the United Nations, Australia is strongly committed to multilateralism and maintains an international aid program under which some 60 countries receive assistance. The 2005–06 budget provides A$2.5 billion for development assistance. Australia ranks fifteenth overall in the Center for Global Development's 2012 Commitment to Development Index.

### Military

Main article: Australian Defence Force

Australian soldiers deployed to Iraq in 2017

Australia's armed forces—the Australian Defence Force (ADF)—comprise the Royal Australian Navy (RAN), the Australian Army and the Royal Australian Air Force (RAAF), in total numbering 81,214 personnel (including 57,982 regulars and 23,232 reservists) as of November 2015. The titular role of Commander-in-Chief is vested in the Governor-General, who appoints a Chief of the Defence Force from one of the armed services on the advice of the government. Day-to-day force operations are under the command of the Chief, while broader administration and the formulation of defence policy is undertaken by the Minister and Department of Defence.

In the 2016–17 budget, defence spending comprised 2% of GDP, representing the world's 12th largest defence budget. Australia has been involved in UN and regional peacekeeping, disaster relief and armed conflict, including the 2003 invasion of Iraq; Australia currently has deployed about 2,241 personnel in varying capacities to 12 international operations in areas including Iraq and Afghanistan.

## Economy

Main article: Economy of Australia

See also: Economic history of Australia, Median household income in Australia and New Zealand, and Transport in Australia

The Boddington Gold Mine in Western Australia is the nation's largest open cut mine.

A wealthy country, Australia has a market economy, a high GDP per capita, and a relatively low rate of poverty. In terms of average wealth, Australia ranked second in the world after Switzerland from 2013 until 2018. In 2018, Australia overtook Switzerland and became the country with the highest average wealth. Australia's poverty rate increased from 10.2% to 11.8%, from 2000/01 to 2013. It was identified by the Credit Suisse Research Institute as the nation with the highest median wealth in the world and the second-highest average wealth per adult in 2013.

The Australian dollar is the currency for the nation, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru, and Tuvalu. With the 2006 merger of the Australian Stock Exchange and the Sydney Futures Exchange, the Australian Securities Exchange became the ninth largest in the world.

Ranked fifth in the Index of Economic Freedom (2017), Australia is the world's 14th largest economy and has the tenth highest per capita GDP (nominal) at US$55,692. The country was ranked third in the United Nations 2017 Human Development Index. Melbourne reached top spot for the fourth year in a row on *The Economist'*s 2014 list of the world's most liveable cities, followed by Adelaide, Sydney, and Perth in the fifth, seventh, and ninth places respectively. Total government debt in Australia is about A$190 billion—20% of GDP in 2010. Australia has among the highest house prices and some of the highest household debt levels in the world.

A vineyard in the Barossa Valley, one of Australia's major wine-producing regions. The Australian wine industry is the world's fourth largest exporter of wine.

An emphasis on exporting commodities rather than manufactured goods has underpinned a significant increase in Australia's terms of trade since the start of the 21st century, due to rising commodity prices. Australia has a balance of payments that is more than 7% of GDP negative, and has had persistently large current account deficits for more than 50 years. Australia has grown at an average annual rate of 3.6% for over 15 years, in comparison to the OECD annual average of 2.5%.

Australia was the only advanced economy not to experience a recession due to the global financial downturn in 2008–2009. However, the economies of six of Australia's major trading partners have been in recession[*when?*], which in turn has affected Australia, significantly hampering its economic growth in recent years[*when?*]. From 2012 to early 2013, Australia's national economy grew, but some non-mining states and Australia's non-mining economy experienced a recession.

The Hawke Government floated the Australian dollar in 1983 and partially deregulated the financial system. The Howard Government followed with a partial deregulation of the labour market and the further privatisation of state-owned businesses, most notably in the telecommunications industry. The indirect tax system was substantially changed in July 2000 with the introduction of a 10% Goods and Services Tax (GST). In Australia's tax system, personal and company income tax are the main sources of government revenue.

As of September 2018, there were 12,640,800 people employed (either full- or part-time), with an unemployment rate of 5.2%. Data released in mid-November 2013 showed that the number of welfare recipients had grown by 55%. In 2007 228,621 Newstart unemployment allowance recipients were registered, a total that increased to 646,414 in March 2013. According to the Graduate Careers Survey, full-time employment for newly qualified professionals from various occupations has declined since 2011 but it increases for graduates three years after graduation.

Since 2008[*when?*], inflation has typically been 2–3% and the base interest rate 5–6%. The service sector of the economy, including tourism, education, and financial services, accounts for about 70% of GDP. Rich in natural resources, Australia is a major exporter of agricultural products, particularly wheat and wool, minerals such as iron-ore and gold, and energy in the forms of liquified natural gas and coal. Although agriculture and natural resources account for only 3% and 5% of GDP respectively, they contribute substantially to export performance. Australia's largest export markets are Japan, China, the United States, South Korea, and New Zealand. Australia is the world's fourth largest exporter of wine, and the wine industry contributes A$5.5 billion per year to the nation's economy.

Access to biocapacity in Australia is much higher than world average. In 2016, Australia had 12.3 global hectares of biocapacity per person within its territory, much more than the world average of 1.6 global hectares per person. In 2016 Australia used 6.6 global hectares of biocapacity per person – their ecological footprint of consumption. This means they use half as much biocapacity as Australia contains. As a result, Australia is running a biocapacity reserve.

In 2020 ACOSS released a new report revealing that poverty is growing in Australia, with an estimated 3.2 million people, or 13.6% of the population, living below the internationally accepted poverty line of 50% of a country's median income. It also estimated that there are 774,000 (17.7%) children under the age of 15 that are in poverty.

## Demographics

Main articles: Demography of Australia and List of cities in Australia by population

Australia has one of the world's most highly urbanised populations with the majority living in metropolitan cities on the coast, such as Gold Coast, Queensland.

Australia has an average population density of 3.3 persons per square kilometre of total land area, which makes it is one of the most sparsely populated countries in the world. The population is heavily concentrated on the east coast, and in particular in the south-eastern region between South East Queensland to the north-east and Adelaide to the south-west.

Australia is highly urbanised, with 67% of the population living in the Greater Capital City Statistical Areas (metropolitan areas of the state and mainland territorial capital cities) in 2018. Metropolitan areas with more than one million inhabitants are Sydney, Melbourne, Brisbane, Perth and Adelaide.

In common with many other developed countries, Australia is experiencing a demographic shift towards an older population, with more retirees and fewer people of working age. In 2018 the average age of the Australian population was 38.8 years. In 2015, 2.15% of the Australian population lived overseas, one of the lowest proportions worldwide.