Australia Map

• Australia is a constitutional monarchy with a federal division of powers. It uses a parliamentary system of government with Queen Elizabeth II at its apex as the Queen of Australia, a role that is distinct from her position as monarch of the other Commonwealth realms. The Queen resides in the United Kingdom, and she is represented by her viceroys in Australia, (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. Supereme executive authority is vested by the constitution of Australia in the sovereign, but the power to exercise it is conferred by the constitution specifically to the Governor-General. The most notable exercise of the Governor-General's reserve powers outside a Prime Minister's request was the dismissal of the Whitlam Government in the constitutional crisis of 1975.

• 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 150 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). Although the Prime Minister is appointed by the Governor-General, in practice the party with majority support in the House of Representatives forms government and its leader becomes Prime Minister.

• 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. Independent members and several minor parties—including the Greens and the Australian Democrats—have achieved representation in Australian parliaments, mostly in upper houses.

• Following a partyroom leadership challenge, Julia Gillard became the first female Prime Minister in June 2010. The last federal election was held on 21 August 2010 and resulted in the first hung parliament in over 50 years. Gillard was able to form a minority Labor government with the support of independents.

• 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 and the Pacific Islands Forum. 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 will attend 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 cooperation.

• 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, ASEAN – Australia – New Zealand Free Trade Area, and the Trans-Pacific Strategic Economic Partnership.

• 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; as a percentage of GDP, this contribution is less than that recommended in the UN Millennium Development Goals. Australia ranks seventh overall in the Center for Global Development's 2008 Commitment to Development Index.

• 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 80,561 personnel (including 55,068 regulars and 25,493 reservists). 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 2010–11 budget, defence spending was A$25.7 billion, representing the 14th largest defence budget in the world but accounting for only 1.2 per cent of global military spending. Australia has been involved in UN and regional peacekeeping, disaster relief, and armed conflict; it currently has deployed approximately 3,330 defence force personnel in varying capacities to 12 overseas operations in areas including East Timor, Solomon Islands and Afghanistan.

• The Australian cinema industry began with the 1906 release of The Story of the Kelly Gang, which is regarded as being the world's first feature-length film, but both Australian feature film production and the distribution of British-made features declined dramatically after World War I as American studios and distributors monopolised the industry and by the 1930s around 95 per cent of the feature films screened in Australia were produced in Hollywood. By the late 1950s feature film production in Australia had effectively ceased and there were no all-Australian feature films made in the decade between 1959 and 1969.

• Thanks to initiatives by the Gorton and Whitlam federal governments, the New Wave of Australian cinema of the 1970s brought provocative and successful films, some exploring the nation's colonial past, such as Picnic at Hanging Rock and Breaker Morant, while the so-called "Ocker" genre produced several highly successful urban-based comedy features including The Adventures of Barry McKenzie and Alvin Purple. Later hits included Mad Max and Gallipoli. More recent successes included Shine and Rabbit-Proof Fence. Notable Australian actors include Judith Anderson, Errol Flynn, Nicole Kidman, Hugh Jackman, Heath Ledger, Geoffrey Rush and current joint director of the Sydney Theatre Company, Cate Blanchett.

• Australia has two public broadcasters (the Australian Broadcasting Corporation and the multicultural Special Broadcasting Service), three commercial television networks, several pay-TV services, and numerous public, non-profit television and radio stations. Each major city has at least one daily newspaper, and there are two national daily newspapers, The Australian and The Australian Financial Review. In 2010, Reporters Without Borders placed Australia 18th on a list of 178 countries ranked by press freedom, behind New Zealand (8th) but ahead of the United Kingdom (19th) and United States (20th). This relatively low ranking is primarily because of the limited diversity of commercial media ownership in Australia; most print media are under the control of News Corporation and Fairfax Media.

• Australia has a market economy with high GDP per capita and low rate of poverty. 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. After the 2006 merger of the Australian Stock Exchange and the Sydney Futures Exchange, the Australian Securities Exchange is now the ninth largest in the world.

• Ranked third in the Index of Economic Freedom (2010), Australia is the world's thirteenth largest economy and has the ninth highest per capita GDP; higher than that of the United Kingdom, Germany, France, Canada, Japan, and the United States. The country was ranked second in the United Nations 2010 Human Development Index and first in Legatum's 2008 Prosperity Index. All of Australia's major cities fare well in global comparative liveability surveys; Melbourne reached second place on The Economist's 2008 World's Most Livable Cities list, followed by Perth, Adelaide, and Sydney in fourth, seventh and ninth place respectively. Total government debt in Australia is about $190 billion. Australia has amongst the highest house prices and some of the highest household debt levels in the world.

• 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 century, due to rising commodity prices. Australia has a balance of payments that is more than 7 per cent 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 per cent for over 15 years, in comparison to the OECD annual average of 2.5 per cent. There are differing opinions based on evidence as to whether or not Australia had been one of the few OECD nations to avoid experiencing a recession during the late 2000s global financial downturn. Six of Australia's major trading partners had been in recession which in turn affected Australia, and economic growth was hampered significantly over recent years.

• 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 per cent Goods and Services Tax (GST). In Australia's tax system, personal and company income tax are the main sources of government revenue.

• In January 2007, there were 10,033,480 people employed, with an unemployment rate of 5.1 per cent. Youth unemployment (15–24) rose from 8.7 per cent to 9.7 per cent over 2008–2009. Over the past decade, inflation has typically been 2–3 per cent and the base interest rate 5–6 per cent. The service sector of the economy, including tourism, education, and financial services, accounts for about 70 per cent 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 per cent and 5 per cent of GDP respectively, they contribute substantially to export performance. Australia's largest export markets are Japan, China, the US, South Korea, and New Zealand. Australia is the world's fourth largest exporter of wine, in an industry contributing $5.5 billion per annum to the nation's economy.

• Australia has no state religion. In the 2006 census, 64 per cent of Australians listed themselves as Christian, including 26 per cent as Roman Catholic and 19 per cent as Anglican. About 19 per cent of the population cited "No religion" (which includes humanism, atheism, agnosticism and rationalism), which was the fastest-growing group from 2001 to 2006, and a further 12 per cent did not answer (the question is optional) or did not give a response adequate for interpretation. The largest non-Christian religion in Australia is Buddhism (2.1 per cent), followed by Islam (1.7 per cent), Hinduism (0.8 per cent) and Judaism (0.5 per cent). Overall, fewer than 6 per cent of Australians identify with non-Christian religions. Weekly attendance at church services in 2004 was about 1.5 million: about 7.5 per cent of the population.

• An international survey, made by the private, not-for profit German think-tank, the Bertelsmann Foundation, found that "Australia is one of the least religious nations in the western world, coming in 17th out of 21 surveyed" and that "Nearly three out of four Australians say they are either not at all religious or that religion does not play a central role in their lives.". A survey of 1,718 Australians by the Christian Research Association at the end of 2009 suggested that the numbers of people attending religious services per month in Australia has dropped from 23 per cent in 1993 to 16 per cent in 2009, and while 60 per cent of 15 to 29-year-old respondents in 1993 identified with Christian denominations, 33 per cent did in 2009.