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The first human habitation of Australia is estimated to have occurred between 42,000 and 48,000 years ago. The first Australians were the ancestors of the current Indigenous Australians; they arrived via land bridges and short sea-crossings from present-day Southeast Asia. Most of these people were hunter-gatherers, with a complex oral culture and spiritual values based on reverence for the land and a belief in the Dreamtime. The Torres Strait Islanders, ethnically Melanesian, inhabited the Torres Strait Islands and parts of far-north Queensland; they possess cultural practices distinct from the Aborigines.

The first undisputed recorded European sighting of the Australian continent was made by the Dutch navigator Willem Janszoon, who sighted the coast of Cape York Peninsula in 1606. During the seventeenth century, the Dutch charted the whole of the western and northern coastlines of what they called New Holland, but made no attempt at settlement. In 1770, James Cook sailed along and mapped the east coast of Australia, which he named New South Wales and claimed for Britain. The expedition's discoveries provided impetus for the establishment of a penal colony there following the loss of the American colonies that had previously filled that role.

The British Crown Colony of New South Wales started with the establishment of a settlement at Port Jackson by Captain Arthur Phillip on 26 January 1788. This date was later to become Australia's national day, Australia Day. Van Diemen's Land, now known as Tasmania, was settled in 1803 and became a separate colony in 1825. The United Kingdom formally claimed the western part of Australia in 1829. Separate colonies were created from parts of New South Wales: South Australia in 1836, Victoria in 1851, and Queensland in 1859. The Northern Territory (NT) was founded in 1863 as part of the Province of South Australia. South Australia was founded as a "free province" — that is, it was never a penal colony. Victoria and Western Australia were also founded "free", but later accepted transported convicts. The transportation of convicts to Australia was phased out between 1840 and 1864.

Politics
The Commonwealth of Australia is a constitutional monarchy and has a parliamentary system of government. Queen Elizabeth II is the Queen of Australia, a role that is distinct from her position as monarch of the other Commonwealth Realms. The Queen is nominally represented by the Governor-General at Federal level and by the Governors at State level. Although the Constitution gives extensive executive powers to the Governor-General, these are normally exercised only on the advice of the Prime Minister. The most notable exercise of the Governor-General's reserve powers outside the Prime Minister's direction was the dismissal of the Whitlam Government in the constitutional crisis of 1975. There are three branches of government.

• The legislature: the Commonwealth Parliament, comprising the Queen, the Senate, and the House of Representatives; the Queen is represented by the Governor-General, who in practice only exercises constitutional power on the advice of the Prime Minister.

• The executive: the Federal Executive Council (the Governor-General as advised by the Executive Councillors); in practice, the councillors are the Prime Minister and Ministers of State.

• The judiciary: the High Court of Australia and other federal courts. The State courts became formally independent from the Judicial Committee of the Privy Council when the Australia Act was passed in 1986.

States and Territories
Australia consists of six states, two major mainland territories, and other minor territories. The states are New South Wales, Queensland, South Australia, Tasmania, Victoria and Western Australia. The two major mainland territories are the Northern Territory and the Australian Capital Territory. In most respects, the territories function similarly to the states, but the Commonwealth Parliament can override any legislation of their parliaments. By contrast, federal legislation overrides state legislation only with respect to certain areas as set out in Section 51 of the Constitution; all residual legislative powers are retained by the state parliaments, including powers over hospitals, education, police, the judiciary, roads, public transport and local government.

Each state and territory has its own legislature (unicameral in the case of the Northern Territory, the ACT and Queensland, and bicameral in the remaining states). The lower house is known as the Legislative Assembly (House of Assembly in South Australia and Tasmania) and the upper house is known as the Legislative Council. The heads of the governments in each state and territory are called premiers and chief ministers, respectively.

Australia also has several minor territories; the federal government administers a separate area within New South Wales, the Jervis Bay Territory, as a naval base and sea port for the national capital. In addition Australia has the following, inhabited, external territories: Norfolk Island, Christmas Island, Cocos (Keeling) Islands, and several largely uninhabited external territories: Ashmore and Cartier Islands, Coral Sea Islands, Heard Island and McDonald Islands and the Australian Antarctic Territory.

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