Australia (comprising of 6 states and 2 territories) is world's smallest continent and sixth largest territory after Russia, Canada, China, the United States of America and Brazil. It has, however, a relatively small population strongly concentrated along the eastern and southeastern coasts. Australia offers freedom of movement and open space and is generally regarded as a country with a magnificent lifestyle. It is a healthy, happy country and a great place to bring up a family.

Popular culture is dominated by an emphasis on leisure activities and outdoor recreation. Great pleasure is taken in traditional backyard barbecues, bush picnics and a wide range of organized sports; Australian rules football, soccer, cricket, tennis, baseball, basketball, volleyball, netball, athletics, cycling, boating, swimming, horseback riding and horse racing. Fishing and gardening are popular activities. A country rich in opportunity, Australia is the ideal place to invest your business skills and talent. The highest point on the mainland, Mount Kosciuszko, is only 2228 metres and there is 25.760 km of coastline.

Australian fashion generally follows Western styles of dress, but is distinctive for the lightweight, colourful casual wear that reflects the absence of harsh winters. Food and drink preferences are influenced by global fashions, but also mirror the rise of ethnic diversity and the country's capacity to produce most kinds of food, wine and other beverages.

Australia became a commonwealth of the British Empire in 1901. It was able to take advantage of its natural resources to rapidly develop its agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. A referendum to change Australia's status, from a commonwealth headed by the British monarch to an independent republic, was defeated in 1999.

CLIMATE

Australia features a wide range of climatic zones, from the tropical Northern regions, through to arid expanses of the interior and regions in the South. In general, Australia has a warm, dry climate – it lies south of the Equator, so its seasons are opposite those in the Northern hemisphere. We could say – any time is a good time to be in Australia. Summer (December to February) can get very hot just about anywhere. From June until August things cool down a little and dry up a lot up north. This is a good time to visit Queensland or the outback. If you ski, this is the time to head for the snowfields of NSW and Victoria. Overall, spring and autumn are probably the safest bets - the weather is reasonably mild wherever you are and spring brings out the wildflowers in the outback.

In winter the snowfields of Tasmania and the Mount Kosciusko area are very attractive, but on the whole Australia is a hot country. The severity of climate, the predominance of the outdoors in the minds and lives of many and the national importance of agricultural and pastoral pursuits all make Australians perhaps more climate-conscious than most.

The monsoon brings summer rains to the Northern coastal area and extends inland for variable distances. The areas affected by tropical cyclones, receive the heaviest rains of any part of Australia where northern Queensland area around Cairns is the wettest.

DEMOGRAPHICS

Immigration has been essential to Australia's development since the beginning of European settlement in 1788. For generations, most settlers came from the British Isles and the people of Australia are still predominantly of British or Irish. However, since the end of World War II, the population has more than doubled; non-European immigration, mostly from the Middle East, Asia and Latin America, has increased significantly since 1960 through an extensive, planned immigration program. Britain and Ireland have been the largest sources of post-war immigrants, followed by Italy, Greece, New Zealand and republics of former Yugoslavia.

The 1970s saw progressive reductions in the size of the annual immigration program due to economic and employment conditions; in 1969-70, 185.000 persons were permitted to settle, but by 1975-76 the number had dropped to 52.700. Immigration has slowly risen since; in 2001-02, Australia accepted more than 97.000 regular immigrants. In addition, since 1992 about 7.300 New Zealanders have settled in Australia each year.

HISTORY

Australia was uninhabited before stone-culture people arrived, perhaps by boat across the waters separating the island from the Indonesia archipelago more than 50.000 years ago. Aboriginal and Torres Strait Islander peoples inhabited most areas of present settlement, however there were an estimated 300.000 indigenous Australians living on the continent.

Australia's original inhabitants Aborigines, have the longest continuous cultural history in the world. Europeans began to encroach in the 16th century; Portuguese navigators were followed by Dutch explorers and the enterprising English pirate William Dampier. Captain James Cook sailed the entire length of the eastern coast in 1770, stopping at Botany Bay on the way. After rounding Cape York, he claimed the continent for the British and named it New South Wales.

On January 26, 1788 (now celebrated as Australia Day), the First Fleet under Capt. Arthur Phillip landed at Sydney and formal proclamation of the establishment of the Colony of New South Wales followed on February 7. Many but by no means all of the first settlers were convicts, condemned for offences that today would often be thought trivial. The mid-19th century saw the beginning of government policies to emancipate convicts and assist the immigration of free persons. The discovery of gold in 1850 led to increased population, wealth and trade. Aborigines were ruthlessly pushed off their tribal lands as new settlers took up land for farming or mining.

Post World War II immigration brought a flood of European immigrants, many of them non-British. The immigrants have since made an enormous contribution to the country, enlivening its culture and broadening its vision. The post-war era was a boom time in Australia as its raw materials were once again in great demand.

The Duke of York opened the first federal Parliament at Melbourne in May 1901. In May 1927, the seat of government was transferred to Canberra, a planned city designed by an American Walter Burley Griffin. The first session of Parliament in that city was opened by another Duke of York (later King George VI). Australia passed the Statute of Westminster Adoption Act on October 9, 1942 that officially established Australia's complete autonomy in both internal and external affairs.

The six colonies that now constitute the states of the Australian Commonwealth were established in the following order: New South Wales, 1788; Tasmania, 1825; Western Australia, 1830; South Australia, 1836; Victoria, 1851; and Queensland, 1859.

GOVERNMENT

Australia's system of government is based on the liberal democratic tradition including religious tolerance and freedom of speech and association. Its institutions and practices reflect British and North American models but are uniquely Australian.

The Australian Constitution defines the responsibilities of the federal government that include foreign relations and trade, defence and immigration. Governments of States and Territories are responsible for all matters not assigned to the Commonwealth. State parliaments and Territory assemblies follow the principles of responsible government.

Australia is a parliamentary democracy. Both the federal upper house (the Senate) and the lower house (the House of Representatives) are directly elected by universal adult suffrage with a minimum voting age of 18. All state lower houses are similarly elected. Voting in both federal and state elections is compulsory (with the exception of elections to South Australia's Legislative Council). Official chief of state is Queen Elizabeth II (since 6 February 1952) represented by Governor General Sir William Deane (since 16 February 1996).

More than 800 local government authorities serve almost the whole of the settled area of Australia. Their main powers are derived from special legislation in each state that integrates them into the higher state administration.

HEALTH

The Australian Government provides help with medical expenses through a scheme called Medicare. Medicare provides health care services and programs such as free public hospital care, help with the cost of out-of-hospital care and subsidised medicines. Medicare is the central platform of the Australian national health care system. It is government financed by taxation through an income-related levy (presently 1.5% of taxable income and automatically paid with income tax).

Many Australians belong to private health insurance funds. They cover you for treatment as a private patient in private or public hospitals and can include some services that Medicare does not cover, such as dental and optical services. The costs and types of cover vary widely, so if you decide to get private health insurance, it is important to check the details carefully before you take out the policy.

The Commonwealth Government, through the Department of Health and Aged Care, provides a range of services for older people, such as:

• care and support to allow older people to remain independent and to continue to live in their homes

• residential care for people unable to continue to care for themselves

• services for people with special needs

• free vaccinations against certain illnesses that affect older people.

EDUCATION

Australia has a well developed education system with participation rates and secondary school completion rates among the highest in the world. Preschool and school education has a similar structure across Australia with only slight variations amongst the States and Territories. Preschool education is commonly one year in length and is not compulsory. School education is thirteen years with some variations in Queensland and Western Australia. It is divided into a preparatory year, primary schooling and secondary schooling. The preparatory year is not compulsory but is almost universally undertaken.

Children generally begin formal schooling in the year they turn 5 or 6 dependent on the state, with a variety of pre-school options being available including kindergarten/prep (age 3-4 years) and preschool/reception (age 5 years). There are a wide variety of State-run and private pre-schools including those run by independent schools. School education is compulsory until the age of 15 except in Tasmania where it is compulsory until age 16.

Schools in Australia are either Government (State run and funded) or Independent (private) schools. Independent schools receive a percentage of the cost of educating a student from the Federal and State Governments in a proportion that varies from school to school. Consequently the fees charged in Independent schools vary from school to school, sector to sector and state to state.

Australia is the first choice destination of many international students. Students from all over the world come to Australia every year to take advantage of our world-class universities, vocational education and training colleges, schools and our world leadership in English language courses. Australia is an increasingly popular and internationally recognised source of high quality education and research excellence. Australian universities have been at the forefront of internationalisation and have an international reputation for scientific excellence in many disciplines including agriculture, astronomy, engineering, mathematics and microbiology.

More than 150.000 international students study in Australian education and training institutions each year from over 80 countries; there are about 3000 formal international agreements between Australian and overseas universities. Australia also offers excellent value for money, with living expenses and tuition costs in Australia considerably less expensive than the United Kingdom and United States of America and a standard of living that is amongst the highest in the world.

ECONOMY

Australia has a prosperous Western style capitalist economy, with a per capita GDP at the level of the four dominant West European economies. It’s the world’s fourteenth largest economy with very strong engagement in Asia region. Rich in natural resources, Australia is a major exporter of agricultural products, minerals, metals, and fossil fuels. Australia has had one of the strongest economies in the world - in recent years more competitive, open and vibrant than ever before. Strong economic performance over the past decade resting on strong growth, low inflation and low interest rates has been the result of effective macroeconomic management and ongoing structural reform, along with a competitive and dynamic private sector and a skilled, flexible workforce.

While Australia has suffered from the low growth and high unemployment characterizing the OECD countries in the early 1990s and during the recent financial problems in East Asia, the economy has expanded at a solid 4% annual growth pace in the last five years. Australia's governments have usually shown a pronounced readiness to intervene in the economy, but it’s also influenced by foreign interests – first by those of the United Kingdom, then by the United States and Japan and latterly by the decisions of big multinational corporations.

Tourism is one of Australia’s largest and fastest growing industries. Generating more than $16 billion in foreign exchange earnings a year, inbound tourism contributes more than 4.6% of gross domestic product. Australia's developed market economy is dominated by its services sector (63% of GDP), yet it is the agricultural and mining sectors (7% of GDP combined) that account for the bulk (58%) of Australia's goods and services exports. Australia's comparative advantage in primary products is a reflection of the natural wealth of the Australian Continent and its small domestic market; 19 million people occupy a continent the size of the contiguous United States.

Australia recognises that inward foreign investment is a key element in achieving increased living standard and economic prosperity and welcomes foreign investment. It commenced a basic reorientation of its economy more than 16 years ago and has transformed itself from an inward looking, import-substitution country to an internationally competitive, export-oriented one.

The ultimate goal is for Australia to become a competitive producer and exporter, not just of traditional farm and mineral commodities, but of a diversified mix of value-added manufactured products, services and technologies. Australia’s international trade competitiveness is relying increasingly on skills, knowledge, innovation and enterprise, as well as domestic and international information networks.

Australia recorded economic growth over 1999 of 4.3%, founded for the third year running on strong domestic demand thanks to a combination of low interest rates, low inflation and rising asset prices. The economy is expected to downshift a gear over 2000-2001 as the composition of growth in gross domestic product moves away from domestic demand to exports and fiscal stimulus. The fiscal boost mentioned stems from the Australian Government's reform of the taxation system (take effect in July 2000) granting substantial cuts in personal income tax in exchange for the introduction of a broad-based consumption tax.

GDP: US$418 billion
GDP per head: US$23.100
Annual growth: 4.1%
Inflation: 2.1%
Major products/industries: Minerals, oil, coal, gold, wool, cereals, meat, aluminium, machinery and transport equipment, tourism.
Major markets: Japan, US, New Zealand, South Korea, EU
Major suppliers: US, Japan, China, Germany, UK, New Zealand, Taiwan, Singapore