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Australia: an introduction

Last updated 17 May 1995



Land - Flora and fauna - History - People - Immigration - Refugees -
International Relations - Overseas aid program - Defence - Government -
Political parties - Legal system - Economy - Science and technology -
Industrial relations - Taxation and banking - Communications - Way of life -

Australia is the only nation occupying a whole continent. It is one of the
oldest land masses, the flattest continent, and (after Antarctica) the
driest. Australia is the sixth largest country in area (after Russia,
Canada, China, the United States and Brazil), yet it has a population of
only 17.8 million. Vast areas are arid or semi-desert, unsuitable for
settlement.

Australia's original inhabitants are the Aboriginal people. It is uncertain
when they began living on the Australian continent but authorities say it is
probably 50 000 to 60 000 years ago. Some say it may be as long as 100 000
years. The first European settlement took place little more than 200 years
ago. Since then, Australia has developed into a recognised world trader
which makes significant contributions to global developments and
international affairs. Australia is committed to a democratic system of
government and a multicultural society.

Australia is a land of beauty, yet it knows the harshness of bushfire, flood
and drought. It experiences the temperature extremes of tropics and
snow-capped mountains, and although it is home to deserts, its plains
support efficient agricultural industries. Australia is well known for the
warmth of its welcome to overseas visitors and the relaxed informality of
its people.

Land

Australia's land mass is 7 682 300km2. About one-third is desert or
semi-desert, or is used for a variety of non-agricultural purposes, such as
national parks, forestry, mining and urban areas. Less than 10 per cent of
the remainder is used for crops or improved pastures. The average elevation
is less than 300m (compared with the world mean of 700m), and the highest
mountain is Mount Kosciusko (2228m).

Nearly a third of the continent lies in the tropics, and the rest is in the
temperate zone. The coldest regions are in the highlands and tablelands of
Tasmania and the south-eastern corner of the mainland. Summer is from
December to February, autumn (fall) from March to May, winter from June to
August, and spring from September to November.

Flora and fauna

Australiaâs geographic isolation has produced a unique flora and fauna.
Wild-flowers turn the arid and savannah grasslands into carpets of colour
after rain. Among these are the waratah, flannel flower, desert pea,
Christmas bush and kangaroo paw. Native forests are limited mainly to wetter
coastal districts. Rainforests are now largely confined to Queensland.
Common native trees are the gum tree (eucalyptus) with about 500 species,
and the wattle (acacia) with 600 species.

Australia is the land of marsupials - mammals that carry their young in
pouches. The best known are the kangaroo and the koala. There are about 230
species of native mammals, 300 of lizard, 140 of snake, six of marine turtle
and two of crocodile. Birdlife is colourful and plentiful, with about 800
species. The largest bird is the flightless emu.

History

Australiaâs original inhabitants, the Aborigines, developed complex nomadic
hunter-gatherer cultures with rich oral traditions, rituals and ceremonies
and associated highly abstract art forms.

European discovery of Australia was a by-product of 16-17th century trade
expansion into Asia by Portugal, Spain and Holland. In 1606, the Spanish
navigator Luis Vaez de Torres sailed through the strait separating Australia
and Papua New Guinea. In the same year, a Dutch ship at Cape York made the
first authenticated landing by a European on the Australian continent. In
1642, Dutchman Abel Tasman discovered Tasmania, which he named Van Diemenâs
Land.

Captain James Cook, of the British Royal Navy, on 20 April 1770 made the
first sighting of the east coast of Australia by a European. Nine days later
he landed at an inlet which he named Botany Bay after the rich variety of
botanical specimens his party collected in the area.

After the American War of Independence, Britain looked for new penal
settlements to replace the north Atlantic colonies. In May 1787, a fleet of
11 ships sailed from England under the command of Captain Arthur Phillip,
who became the first Governor of the colony of New South Wales. The fleet
reached Botany Bay on 18 January 1788, with 736 convicts among the 1530
people on board. Eight days later the settlement was re-established a few
kilometres north at Port Jackson, where there was better soil and fresh
water. Today, this is the site of Sydney ö Australiaâs largest city.

In 1803, a settlement was established at Hobart in Tasmania. Others
followed: on the Brisbane River (Queensland) in 1824, the Swan River
(Western Australia) in 1829, at Port Phillip Bay (Victoria) in 1835, and the
Gulf St Vincent (South Australia) in 1836. Transportation of convicts from
Britain to New South Wales ended in 1840 and to Tasmania in 1853, but
continued in Western Australia until 1868. In the 1850s, migration was
boosted by the arrival of free settlers seeking riches on the goldfields or
a living from the land.

Population growth and economic expansion prompted the colonies to call for
self-government. On 1 January 1901 the six colonies joined in a federation
of states to become the Commonwealth of Australia.

The first 30 years of federation were marked by new laws which put Australia
in the forefront of social welfare legislation and saw further development
of manufacturing industry.

In international relations, the Commonwealth developed towards independent
nationhood. Relationships with Britain and the rest of Europe, and with the
United States, are important factors in Australiaâs history and present
policies. The nation is now a middle-level power with a particular interest
in the Asia-Pacific region.

People

Australiaâs population in March 1994 was estimated at 17.803 million, more
than double the 1945 figure. Net growth in 1993 was 0.99 per cent. Natural
increase accounted for more than 79 per cent of this, and migration for the
rest.

Australiaâs lifestyle reflects its mainly western origins. However,
Australia is also a multicultural society which has been enriched by nearly
five million settlers from almost 200 nations. Four out of 10 Australians
are migrants or the first-generation children of migrants, half of them from
non-English-speaking backgrounds. About eight per cent of Australians have
parents who were both born overseas. In 1993, South-East Asia contributed 20
per cent of settler arrivals and North East Asia 13 per cent.

Two out of three Australians live in major urban areas. Couples have an
average of two children, and about 78 per cent are buying or have paid for
their own home. Men are likely to be employed in manufacturing, wholesale or
retail trade, or service industries. More than 42 per cent of the workforce
is female. The Australian woman has a life expectancy of 80, and a man, on
average, lives to about 75.

Aboriginal and Torres Strait Islander people total nearly 1.5 per cent of
the population (265 492 at the 1991 census). Two-thirds of the indigenous
people live in towns and cities. Many others live in rural and remote areas.
Some still have a broadly traditional way of life. Government legislation
and policies are aimed at rectifying the disadvantages suffered as a group
by the Aboriginal and Torres Strait Islander people. The policies are based
on a recognition of the right of indigenous Australians to determine their
own future ö a policy of self-determination of which economic independence
is the cornerstone.

Australia has a tradition of religious tolerance. About three-quarters of
Australians are Christians. Of these, one-third each are Roman Catholic or
Anglican. Many other faiths are followed, including Jewish, Islamic and
Buddhist.

Immigration

About 70 000 settlers arrived in 1993-94 under Australiaâs
non-discriminatory immigration policy. The policy allows entry for permanent
residence of people with:

   * close family ties in Australia;
   * capital and business expertise;
   * skills, qualifications and abilities in particular demand; and
   * refugee and humanitarian needs.

Refugees

Australia plays a major role in resettlement of, or assistance to, refugees
around the world.

It has a long-standing commitment to help people who are fleeing
persecution. More than 500 000 refugees and displaced people settled in
Australia between 1945 and 1994.

International Relations

Australiaâs foreign policy can be broadly characterised as middle power
diplomacy with an Asia-Pacific orientation. Its national interests can be
divided into three groups:

   * geopolitical and strategic interests;
   * economic and trade interests; and
   * responsible international citizenship.

The priorities include:

   * consolidating Australiaâs integration into the Asia-Pacific region:
     especially by further developing regional economic cooperation and
     trade and investment liberalisation through the Asia Pacific Economic
     Cooperation (APEC) process, by pursuit of bilateral trade expansion
     strategies, and by further building Australiaâs official trade and
     diplomatic presence in the region;
   * contributing to continuing global trade liberalisation: especially
     through the reinforcement of the Uruguay Round of multilateral trade
     negotiations, and support for institutions and measures designed to
     avoid the formation of warring trade blocs;
   * strengthening the Asia-Pacific regional security environment;
   * supporting a strengthened and more effective United Nations;
   * supporting the application of universal human rights and democratic
     principles; and
   * maintaining a strong commitment to overseas development assistance.

Overseas aid program

Australiaâs development cooperation program is administered by the
Australian International Development Assistance Bureau (AIDAB). The
objective of the program is to promote ecologically sustainable development
in developing countries.

The program, worth over $1486 million per year, is primarily focused on the
Asia-Pacific region, it concentrates on sectors of Australian expertise
including education, agriculture and infrastructure development.

Defence

The Australian Governmentâs 1993-94 Budget allocated $9.7 million to
defence. This represents 8.5 per cent of total Budget outlay and 2.3 per
cent of gross domestic product.

The Australian Defence Force (ADF) implements Government policy, based on
self-reliance in accordance with financial, industrial, technological and
human resources. The ADF consists of the Army, the Royal Australian Air
Force (RAAF) and the Royal Australian Navy (RAN). Its total permanent force
is almost 59 000, of whom 45 per cent serve in the Army, 30 per cent in the
Air Force and 25 per cent in the Navy. Most positions are open to women.
Civilian support staff total about 21 000, and there are about 28 000
reserve personnel.

Government

Australiaâs political institutions and practices follow the western
democratic tradition reflecting British and North American experience.

Australia has a three-tier (federal, state, and local) system of government.
At the federal level is the Australian Parliament (the legislature) and
Government, responsible for all matters of national interest. The Parliament
is situated in Canberra, the national capital.

At state level are six governments and their legislatures, and the Northern
Territory and the Australian Capital Territory (ACT), are structured
similarly. Local governments comprise about 900 elected city, municipal and
shire bodies.

Federal parliamentary powers are defined in the Australian Constitution,
which came into force at federation, on 1 January 1901. All parliaments
except those of Queensland, the ACT and the Northern Territory have two
chambers. The Australian Parliament comprises the House of Representatives
(Lower House) and the Senate (Upper House). Government is modelled on the
Westminster system, with a Cabinet as the major policy-making agency. Legal
effect is given to Cabinet decisions by the Executive Council, a formal body
presided over by the Governor-General, who represents (with six state
governors) Queen Elizabeth II, formally Queen of Australia.

Political parties

Four main political parties are represented in the Australian Parliament:
the Australian Labor Party (ALP), the Liberal Party, the National Party of
Australia and the Australian Democrats. All are federal in character, with
state divisions or branches and a federal executive and conference.

In 1993 the ALP won its fifth successive term in office since coming to
power in 1983. The ALP holds 80 seats in the House of Representatives, the
Liberal Party 49, the National Party 16, and Independents two. In the
Senate, the ALP holds 30 seats, the Liberal Party 30, the National Party
six, the Australian Democrats seven, and others three.

Legal system

Australiaâs system of law was inherited from the British system and
resembles it closely. Several important differences exist, however, mainly
because Australia has a written constitution and a federal form of
government.

Each of the states and territories has its own court system, and a federal
system exists to deal mainly with matters over which the federal parliament
has jurisdiction.

Under the Australian Constitution, the judicial power of the federal
Government is vested in the High Court of Australia and any other courts the
federal Government creates. The High Court is the apex of the Australian
judicial system and may deal with federal and state matters. It has original
jurisdiction in the interpretation of the Constitution and the determination
of legal disputes between the Federal Government and state governments,
suits between state governments and suits between citizens from different
states. It is the final court of appeal.

Law enforcement is dealt with by federal, state and territory police forces.
Each force is an independent body, but all cooperate closely with one
another. The Australian Federal Police (AFP) is the Federal Governmentâs
primary law enforcement agency.

Economy

Australia has developed a mature, diverse economy of which 80 per cent is in
the services sector. Many structural changes were introduced in the 1980s.

Rapid expansion of secondary industry, diversification and overall economic
growth occurred in the past 50 years, and there was also massive investment
in export-oriented mining and energy projects. During the 1980s, Australiaâs
export base was diversified considerably, with the fastest growth in
manufactured products and in services. However, even though rural and mining
sectors now account for a small part of Australian production, they
nevertheless account for about 59 per cent of total exports.

Australiaâs inflation rate in 1994 was 2.5 per cent. One of the lowest rates
of OECD countries.

The services sector, accounts for 80 per cent of production and 80 per cent
of employment.

Manufacturing accounts for 15.9 per cent of production, employing one worker
in every seven. Products range from fashion garments to food, electronics to
household appliances, base metals to precision instruments, and oil refining
to plastics. The manufacturing sector is increasingly sophisticated and
technology-based. Exports of manufactured goods have grown at an average
rate of 13 per cent a year since 1987 - nearly three times the average OECD
rate.

About 41 per cent of Australiaâs exports to South-East Asia are manufactured
goods. Australia sells more to the ASEAN countries than to either the US or
the EC. Australia is the 17th-largest supplier of manufactured goods to
Japan - ahead of Belgium, Ireland and India.

Australia leads the world in wool production and is a major supplier of
wheat, meat and sugar. Australia is also one of the worldâs largest coal
exporters and a major supplier of iron ore, gold, bauxite and alumina.

The value of exports and imports in calendar year 1993 placed Australia 20th
as a world trader. Australia trades with about 200 countries and territories
and exports almost 300 million tonnes of freight a year.

In the financial year 1993-94, total exports were valued at $64 652 million,
an increase of 6.5 per cent over the previous year. Figures for imports were
$64 470 million, an increase of 8.2 per cent.

Science and technology

Australian scientists and researchers make significant contributions to
international knowledge and development. They are responsible for many
advances in manufacturing, mining, agricultural and high technology
industries. Medical teams have attracted world interest in research into
immunology, cancer treatment and in-vitro techniques. Australia is
pioneering alternative energy sources, particularly solar power. Technology
advances include development of an internationally accepted aircraft landing
system, a heart pacemaker, a bionic ear, and computer hardware and software.
Significant advances have been made in water research, specialised surgery,
veterinary medicine and nuclear-waste disposal.

Employing about 7000 people, the Commonwealth Scientific and Industrial
Research Organisation (CSIRO) is the major national science agency. Other
government research agencies are the Australian Nuclear Science and
Technology Organisation (ANSTO), the Australian Institute of Marine Science,
and the Defence Science and Technology Organisation (DSTO). Universities,
research institutes and industry also undertake major research programs.

Industrial relations

Australiaâs workforce averages about 8 million, or 63 per cent of the
civilian population aged 15 or older. About 51 per cent of employees belong
to a trade union.

Workers have minimum pay and conditions of employment prescribed in legal
awards and workplace or enterprise agreements as ratified by federal and
state industrial relations tribunals.

The principal tribunal is the Australian Industrial Relations Commission.
The Australian Council of Trade Unions (ACTU) is the national peak body of
trade unions and all major unions are affiliated.

Bodies representing business and employer interests include the Australian
Chamber of Commerce and Industry (ACCI), the Business Council of Australia
(BCA), and the Metal Trades Industry Association (MTIA).

There is a trend away from centralised wage fixing by the industrial
relations tribunals to workplace and enterprise bargaining, between workers,
their unions and employers. Under these agreements pay and conditions are
tied to such factors as productivity, multi-skilling, and education and
training.

An agreement between the Australian Government and the trade union movement
'the Accord' has played a crucial role in the cooperative approach to
structural change and workplace reform.

The standard working week is 38 hours, usually from Monday to Friday. Higher
rates, known as penalty rates, are often paid to workers for irregular or
weekend hours. However, workplace and enterprise bargaining has often
resulted in flexible working hours and the incorporation of penalty rates in
overall pay rates.

Australian workers generally receive four weeksâ paid annual leave, and many
are paid a leave bonus or loading of 17.5-25 per cent. Employers are also
required to make a minimum level of superannuation contributions on behalf
of their employees.

Taxation and banking

Taxes are levied without duplication at federal, state and local government
levels. Employers deduct income tax from earnings (the pay-as-you-earn
system). Adjustments are made after the close of the financial year (30
June). Australian residents with overseas incomes are assessed, but not
double taxed.

The Reserve Bank of Australia is the central bank, and there are more than
30 commercial groups. The national fiscal structure has undergone
considerable change since the Government deregulated financial markets and
floated the exchange rate in the 1980s. Almost all borrowing, lending and
interest controls on the banking system have been removed. A number of
foreign banks operate under licence in Australia, some in joint venture with
local partners. In the past 10 years foreign investment guidelines have been
liberalised.

Communications

Long distances and sparse population present major challenges to the
development of efficient communications networks.

The transport system includes nearly 850 000km of roads, 240 000km of
unduplicated air routes and 40 000km of government railways.

Postal and telecommunications services, set up by the Federal Government,
are maintained through a number of agencies. Telstra Corporation has become
Australiaâs new publicly owned telecommunications carrier following the
merger in 1992 of the domestic telecommunications service Telecom and OTC
Limited. Telstra is the worldâs seventh largest investor in, and user of,
the communications satellite INTELSAT. Optus Communications has been
introduced as a competitor to Telstra through the privatisation of the
national satellite carrier, AUSSAT Pty Ltd.

Australia Post is an Australian Government business enterprise which
provides letter and parcel post and a range of associated postal services.

Way of life

Australians have traditionally enjoyed an affluent way of life, with access
to a wide range of services and facilities:

Social security: The Federal Government provides pensions for the old, the
severely disabled, and sole parents; benefits for the unemployed who are
seeking work and those temporarily unable to work because of illness; and
allowances for families with children.

Education: States and Territories are responsible for providing educational
services, with supplementary funding coming from the Federal Government.
Schooling is compulsory until the age of 15 or 16 (varies between states).
About 72 per cent of school children are educated in government schools. In
1994, there were more than 2.2 million children at government schools and
another 870 000 were in the private system. Australia has 42 higher
education institutions. In 1994, there were about 345 000 full-time
students, and 241 000 in part-time and external studies.

Health: Australiaâs public health services are two-tiered: private medical
practitioners provide primary care and hospital systems (public and private)
provide comprehensive services. A universal health insurance scheme,
Medicare, gives Australian residents protection against hospital costs
(excluding private patients), and medical and eye care. This is partly
funded by a 1.4 per cent levy on taxable incomes.

Short-stay visitors to Australia must pay for all medical and hospital
treatment; private insurance is available. Visitors from countries with
reciprocal health care agreements (Italy, Malta, the Netherlands, New
Zealand, Sweden and the UK) are covered by Medicare. Foreign students in
Australia on sponsored studies also have cover, but those paying full fees
must pay an advance premium.

Housing: Owner-occupation of domestic housing is high ö about 70 per cent.
The most popular type is the three-bedroom single-floor home on a separate
block of land, although there is a steady move towards higher-density
housing.

Environment: Australians are now increasingly involved in environmental
issues and nearly half a million people are active in conservation groups.
All spheres of Australian government share responsibility for the
environment.

The arts: Many aspects of the arts have their roots in European traditions,
but the Australian environment, Aboriginal culture, history, and cultural
influences from Asia have contributed to the emergence of a distinct
Australian cultural identity.

Media: Australia has a thriving media scene, with newspaper readership among
the world's highest relative to population. Specialist media outlets reflect
minority and ethnic groups.

Tourism: Australia's climate, its geographical and cultural diversity, its
safety and its friendly people have made the country a popular international
tourist destination. Tourism is one of the biggest industries, representing
5.6 per cent of the gross domestic product . In 1993, almost 3 million
overseas tourists visited Australia. All visitors must have visas and
passports, valid for three months longer than the intended stay. New
Zealanders require only a valid passport.

Sport: Australians are great lovers of sport as participants and spectators
alike. There is a wide variety of accessible recreational and competitive
sport. Almost half the population is registered as sports participants,
while many more take part informally. There are more than 100 national
sporting organisations and thousands at state, regional and local club
level, many with modern purpose-built facilities. Australia is one of only
three nations to have competed at every modern Olympic Games, and has taken
part in all 14 Commonwealth Games.

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