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Aboriginal settlers arrived on the continent from Southeast Asia about 40,000 years before the first Europeans began exploration in the 17th century. No formal territorial claims were made until 1770, when Capt. James COOK took possession in the name of Great Britain. Six colonies were created in the late 18th and 19th centuries; they federated and became the Commonwealth of Australia in 1901. The new country took advantage of its natural resources to rapidly develop agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. In recent decades, Australia has transformed itself into an internationally competitive, advanced market economy. It boasted one of the OECD's fastest growing economies during the 1990s, a performance due in large part to economic reforms adopted in the 1980s. Long-term concerns include climate-change issues such as the depletion of the ozone layer and more frequent droughts, and management and conservation of coastal areas, especially the Great Barrier Reef.
soil erosion from overgrazing, industrial development, urbanization, and poor farming practices; soil salinity rising due to the use of poor quality water; desertification; clearing for agricultural purposes threatens the natural habitat of many unique animal and plant species; the Great Barrier Reef off the northeast coast, the largest coral reef in the world, is threatened by increased shipping and its popularity as a tourist site; limited natural fresh water resources
world's smallest continent but sixth-largest country; population concentrated along the eastern and southeastern coasts; the invigorating sea breeze known as the "Fremantle Doctor" affects the city of Perth on the west coast and is one of the most consistent winds in the world
Catholic 25.8%, Anglican 18.7%, Uniting Church 5.7%, Presbyterian and Reformed 3%, Eastern Orthodox 2.7%, other Christian 7.9%, Buddhist 2.1%, Muslim 1.7%, other 2.4%, unspecified 11.3%, none 18.7% (2006 Census)
6 states and 2 territories*; Australian Capital Territory*, New South Wales, Northern Territory*, Queensland, South Australia, Tasmania, Victoria, Western Australia
Ashmore and Cartier Islands, Christmas Island, Cocos (Keeling) Islands, Coral Sea Islands, Heard Island and McDonald Islands, Macquarie Island, Norfolk Island
Australia Day, 26 January (1788); ANZAC Day (commemorated as the anniversary of the landing of troops of the Australian and New Zealand Army Corps during World War I at Gallipoli, Turkey), 25 April (1915)
chief of state: Queen of Australia ELIZABETH II (since 6 February 1952); represented by Governor General Quentin BRYCE (since 5 September 2008)
head of government:
Prime Minister Kevin RUDD (since 3 December 2007); Deputy Prime Minister Julia GILLARD (since 3 December 2007)
cabinet:
prime minister nominates, from among members of Parliament, candidates who are subsequently sworn in by the governor general to serve as government ministers
elections:
the monarchy is hereditary; governor general appointed by the monarch on the recommendation of the prime minister; following legislative elections, the leader of the majority party or leader of a majority coalition is sworn in as prime minister by the governor general
bicameral Federal Parliament consists of the Senate (76 seats; 12 members from each of the six states and 2 from each of the two mainland territories; one-half of state members are elected every three years by popular vote to serve six-year terms while all territory members are elected every three years) and the House of Representatives (150 seats; members elected by popular preferential vote to serve terms of up to three-years; no state can have fewer than 5 representatives)
elections:
Senate - last held on 24 November 2007 (next to be held no later than 2010); House of Representatives - last held on 24 November 2007 (next to be called no later than 2010)
election results:
Senate - percent of vote by party - NA; seats by party - Liberal Party-National Party coalition 37, Australian Labor Party 32, Australian Greens 5, Family First Party 1, independent 1; House of Representatives - percent of vote by party - NA; seats by party - Australian Labor Party 83, Liberal Party 55, National Party 10, independents 2
Australian Democrats [Julia MELLAND]; Australian Greens [Bob BROWN]; Australian Labor Party [Kevin RUDD]; Country Liberal Party [Terry MILLS]; Family First Party [Steve FIELDING]; Liberal Party [Tony ABBOTT]; The Nationals [Warren TRUSS]
blue with the flag of the UK in the upper hoist-side quadrant and a large seven-pointed star in the lower hoist-side quadrant known as the Commonwealth or Federation Star, representing the federation of the colonies of Australia in 1901; the star depicts one point for each of the six original states and one representing all of Australia's internal and external territories; on the fly half is a representation of the Southern Cross constellation in white with one small five-pointed star and four larger, seven-pointed stars
Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia's trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the Rudd government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.5% during the first three quarters of 2009 - the best performance in the OECD. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.3% by February 2010. As a result of an improved economy, the budget deficit is expected to peak below 4.2% of GDP and the government could return to budget surpluses as early as 2015. The Australian financial system remained resilient throughout the financial crisis and Australian banks have rebounded. Australia was one of the first advanced economies to raise interest rates - three times since October 2009 - and the government removed the wholesale funding guarantee for financial institutions in March 2010. During 2010, the government will focus on raising Australia's economic productivity, managing the symbiotic, but sometimes tense, economic relationship with China, passing emissions trading legislation, and dealing with other climate-related issues such as drought and devastating bushfires. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China and Japan.
general assessment: excellent domestic and international service
domestic:
domestic satellite system; significant use of radiotelephone in areas of low population density; rapid growth of mobile telephones
international:
country code - 61; landing point for the SEA-ME-WE-3 optical telecommunications submarine cable with links to Asia, the Middle East, and Europe; the Southern Cross fiber optic submarine cable provides links to New Zealand and the United States; satellite earth stations - 19 (10 Intelsat - 4 Indian Ocean and 6 Pacific Ocean, 2 Inmarsat - Indian and Pacific Ocean regions, 2 Globalstar, 5 other) (2007)
17 years of age for voluntary military service (with parental consent); no conscription; women allowed to serve in Army combat units in non-combat support roles (2008)
In 2007 Australia and Timor-Leste signed a 50-year development zone and revenue sharing agreement in lieu of a maritime boundary; dispute with Timor-Leste hampers creation of a revised maritime boundary with Indonesia in the Timor Sea; regional states continue to express concern over Australia's 2004 declaration of a 1,000-nautical mile-wide maritime identification zone; Australia asserts land and maritime claims to Antarctica; in 2004 Australia submitted its claims to Commission on the Limits of the Continental Shelf (CLCS) to extend its continental margins covering over 3.37 million square kilometers, expanding its seabed roughly 30 percent more than its claimed exclusive economic zone; since 2003, Australia has led the Regional Assistance Mission to the Solomon Islands (RAMSI) to maintain civil and political order and reinforce regional security
Tasmania is one of the world's major suppliers of licit opiate products; government maintains strict controls over areas of opium poppy cultivation and output of poppy straw concentrate; major consumer of cocaine and amphetamines
The online Factbook is updated bi-weekly. ISSN 1553-8133
For additional information on government leaders in selected foreign countries, go to World Leaders.
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