History of Australia: Australia was uninhabited until stone-culture peoples arrived, perhaps by boat across the waters separating the island from the Indonesia archipelago more than 40,000 years ago. Portuguese, Spanish, Dutch, and English explorers observed the island before 1770, when Captain Cook explored the east coast and claimed it for Great Britain (three American colonists were crew members aboard Cook's ship, the Endeavour). History of Australia: 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.
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Flag of Australia
Flag Description of Australia: 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
Map of Australia
Map of Australia


Sydney Opera House and Sydney Harbour Bridge, Australia, Sydney
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OFFICIAL NAME OF AUSTRALIA:
Commonwealth of Australia

Geography of Australia
Area: 7.7 million sq. km. (3 million sq. mi.); about the size of the 48 contiguous United States.
Cities (2006): Capital--Canberra (pop. 323,000). Other cities--Sydney (4.3 million), Melbourne (3.6 million), Brisbane (1.8 million), Perth (1.5 million), Adelaide (1.1 million), Darwin (114,000), Hobart (48,808).
Terrain: Varied, but generally low-lying.
Climate: Relatively dry and subject to drought, ranging from temperate in the south to tropical in the far north.

People of Australia
Nationality: Noun and adjective--Australian(s).
Population (2007 est.): 21 million.
Annual population growth rate: 1.3%.
Ethnic groups: European 92%, Asian 6%, Aboriginal 2%.
Religions (2006): Catholic 26%, Anglican 19%, other Christian 9%, other non-Christian 5%, no religion 19% and not stated 12%.
Languages: English.
Education: Years compulsory--to age 15 in all states except Tasmania, where it is 16. Literacy--over 99%.
Health: Infant mortality rate--4.63/1,000. Life expectancy--males 78 yrs., females 83 yrs.
Work force (10.4 million): Agriculture--3.0%; mining--4.9%; manufacturing--10.3%; services--72.4%; public administration and defense--3.8%.

Government of Australia
Type: Democratic, federal-state system recognizing British monarch as sovereign.
Constitution: Passed by the British Parliament on July 9, 1900.
Independence (federation): January 1, 1901.
Branches: Head of state is the British monarch, who is also the Australian sovereign, represented by an appointed governor general. Legislative--bicameral Parliament (76-member Senate, 150-member House of Representatives). The House of Representatives selects as head of government the Prime Minister, who then appoints his cabinet. Judicial--independent judiciary.
Administrative subdivisions: Six states and two territories.
Political parties: Liberal, the Nationals, Australian Labor, Australian Democrats, Australian Greens, and Family First. The Liberal Party and the Nationals form the governing coalition.
Suffrage: Universal and compulsory over 18.
Central government budget (revenue): FY 2007-2008 $219.4 billion; FY 2008-2009 $231.8 billion (2006 US$/$A = 1.32).
Defense: $19.9 billion or 1.81% of GDP for FY 2007-2008. (2006 US$/$A = 1.32).

Economy of Australia
GDP (year to March 2007): $714.1 billion.
Inflation rate (year to March 2007): 2.4% per annum.
Reserve Bank official interest rate: 6.25%.
Trade: Exports ($114 billion, 2005-2006)--coal, iron ore, non-monetary gold, crude petroleum, and bovine meat. Major markets--Japan, China, South Korea, U.S. ($7.3 billion), New Zealand. Imports ($125 billion, 2005-2006)--passenger motor vehicles, crude petroleum, computers, medicaments, and telecommunications equipment. Major suppliers--China, U.S. ($17.1 billion), Japan, Singapore, and Germany.

PEOPLE of Australia
Australia's aboriginal inhabitants, a hunting-gathering people generally referred to today as Aboriginals and Torres Straits Islanders, arrived more than 40,000 years ago. Although their technical culture remained static--depending on wood, bone, and stone tools and weapons--their spiritual and social life was highly complex. Most spoke several languages, and confederacies sometimes linked widely scattered tribal groups. Aboriginal population density ranged from one person per square mile along the coasts to one person per 35 square miles in the arid interior. When Capt. James Cook claimed Australia for Great Britain in 1770, the native population may have numbered 300,000 in as many as 500 tribes speaking many different languages. The aboriginal population currently numbers 455,031, representing about 2.3% of the population. Since the end of World War II, the government and the public have made efforts to be more responsive to aboriginal rights and needs.

Immigration has been a key 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 origin, with a culture and outlook similar to those of Americans. 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. From 1945 through 2000, nearly 5.9 million immigrants settled in Australia, and about 80% have remained; nearly three out of every 10 Australians are foreign-born. Britain and Ireland have been the largest sources of post-war immigrants, followed by Italy, Greece, New Zealand, and the former Yugoslavia.

Australia's humanitarian and refugee admissions of about 12,000 per year are in addition to the normal immigration program. In recent years, refugees from Africa, the Middle East, and Southwest Asia have comprised the largest element in Australia's refugee program.

Although Australia has scarcely more than three people per square kilometer, it is one of the world's most urbanized countries. Less than 2.5% of the population lives in remote or very remote areas.

Cultural Achievements of Australia
Much of Australia's culture is derived from European roots, but distinctive Australian features have evolved from the environment, aboriginal culture, and the influence of Australia's neighbors. The vigor and originality of the arts in Australia--films, opera, music, painting, theater, dance, and crafts--are achieving international recognition.

Australian actors such as Nicole Kidman, Rachel Griffiths, Cate Blanchett, Geoffrey Rush, Paul Hogan, Hugh Jackman, and Heath Ledger have achieved enormous popularity in the United States. Australian movies and directors such as Peter Weir and Philip Noyes, the conductor Sir Charles Mackerras, and singers such as Olivia Newton-John, children's musicians The Wiggles, AC/DC, Dame Joan Sutherland, Dame Nellie Melba, and Kylie Minogue, also are well known.

Australia has had a widely respected school of painting since the early days of European settlement, and Australians with international reputations include Sidney Nolan, Russell Drysdale, Pro Hart, and Arthur Boyd. Writers who have achieved world recognition include Thomas Keneally, Colleen McCullough, Nevil Shute, Morris West, Jill Ker Conway, Peter Carey, Robert Hughes, Germaine Greer, and Nobel Prize winner Patrick White.

HISTORY of Australia
Australia was uninhabited until stone-culture peoples arrived, perhaps by boat across the waters separating the island from the Indonesia archipelago more than 40,000 years ago. Portuguese, Spanish, Dutch, and English explorers observed the island before 1770, when Captain Cook explored the east coast and claimed it for Great Britain (three American colonists were crew members aboard Cook's ship, the Endeavour).

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, many condemned for offenses 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 1851 led to increased population, wealth, and trade.

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. Settlement had preceded these dates in most cases. Discussions between Australian and British representatives led to adoption by the British Government of an act to constitute the Commonwealth of Australia in 1900. Since Federation, the Commonwealth Government has established two self-governing territories: the Northern Territory, 1978; and the Australian Capital Territory (where the national capital, Canberra, is located), 1989.

The first federal Parliament was opened at Melbourne in May 1901 by the Duke of York (later King George V). 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, which officially established Australia's complete autonomy in both internal and external affairs. Its passage formalized a situation that had existed for years. The Australia Act (1986) eliminated the last vestiges of British legal authority.

GOVERNMENT of Australia
The Commonwealth government was created with a Constitution patterned partly on the U.S. Constitution, although it does not include a "bill of rights". The powers of the Commonwealth are specifically defined in the Constitution, and the residual powers remain with the states. Proposed changes to the Constitution must be approved by the Parliament and the people, via referendum, in order to take effect.

Australia is an independent nation within the Commonwealth. Queen Elizabeth II is the head of state and since 1973 has been officially styled "Queen of Australia." The Queen is represented throughout Australia by a governor general and in each state by a governor.

The federal Parliament is bicameral, consisting of a 76-member Senate and a 150-member House of Representatives. Twelve senators from each state are elected for 6-year terms, with half elected every 3 years. Each territory has two senators who are elected for 3-year terms. The members of the House of Representatives are allocated among the states and territories roughly in proportion to population. In ordinary legislation, the two chambers have coordinate powers, but all proposals for appropriating revenue or imposing taxes must be introduced in the House of Representatives. Under the prevailing Westminster parliamentary system, the leader of the political party or coalition of parties that wins a majority of the seats in the House of Representatives is named prime minister. The prime minister and the cabinet wield actual power and are responsible to the Parliament, of which they must be elected members. General elections are held at least once every 3 years; the last general election was in October 2004.

Each state is headed by a premier, who is the leader of the party with a majority or a working minority in the lower house of the state legislature (Queensland is an exception, with a unicameral parliament). Australia's two self-governing territories have political systems similar to those of the states, with unicameral assemblies. The territories are headed by Chief Ministers who are the leader of the party with a majority or a working minority in the territories' legislature. Australia's 673 local councils assist in the delivery of services such as roads maintenance, sewage and the provision of recreational facilities.

At the apex of the court system is the High Court of Australia. It has general appellate jurisdiction over all other federal and state courts and possesses the power of constitutional review.

Principal Government Officials of Australia
Governor General--Maj. Gen. (Ret.) Michael Jeffery
Prime Minister--John W. Howard
Deputy Prime Minister--Mark A.J. Vaile
Foreign Minister--Alexander Downer
Defense Minister--Brendan J. Nelson
Ambassador to the United States--Dennis Richardson
Ambassador to the United Nations--Robert Hill

Australia maintains an embassy in the United States at 1601 Massachusetts Avenue NW, Washington, DC 20036 (tel. 202-797-3000), and consulates general in New York (212-351-6500), San Francisco (415-536-1970), Honolulu (808-524-5050), Los Angeles (310-229-4800), Chicago (312-419-1480) and Atlanta (404-760-3400).

POLITICAL CONDITIONS of Australia
Three political parties dominate the center of the Australian political spectrum. The Liberal Party (LP), nominally representing urban business interests, and the Nationals, nominally representing rural interests, are the more conservative parties. The Australian Labor Party (ALP) nominally represents the trade unions and left-of-center groups. The ALP, founded by labor unions, traditionally had been moderately socialist in its policies and approaches to social issues. Today, it is a best described as a social democratic party. All political groups are tied by tradition to domestic welfare policies offering extensive social welfare programs. Over the last decade, Australia's social welfare system has increased assistance to families while imposing obligations on those receiving unemployment benefits and disability pensions. There is strong bipartisan sentiment on many international issues, including Australia's commitment to its alliance with the United States.

The Liberal /National coalition came to power in 1996, ending 13 years of ALP government and electing John Howard Prime Minister. Re-elected in October 1998, November 2001, and October 2004, the coalition now holds 87 seats (75 Liberal/12 National) in the House of Representatives, against 60 for the ALP, and 3 independents. Currently, in the Senate, the coalition holds a majority with 39 seats in the 76-seat chamber, against 28 for the ALP, 4 for the Australian Democrats, 4 for the Australian Greens, and 1 for the Family First party.

Howard's center-right coalition moved quickly to reduce federal government debt and the federal budget deficit, decrease the influence of organized labor, realign the immigration program to better attract skilled labor, and reform Australia's tax and social welfare systems. The Howard government, building on the economic reforms begun by the ALP governments of Robert Hawke and Paul Keating, also has accelerated the pace of privatization, beginning with the government-owned telecommunications corporation and introducing policies to deter illegal immigration and people-smuggling. The Howard government has continued the foreign policy of its predecessors, stressing relations with four key countries: the United States, Japan, China, and Indonesia. The Howard government strongly supports U.S. engagement in the Asia-Pacific region and has sent troops as part of the coalitions in Afghanistan and Iraq. National elections will likely take place in late 2007.

ECONOMY of Australia
Australia's advanced market economy is dominated by its services sector (72% of GDP), yet it is the agricultural and mining sectors (8% of GDP combined) that account for the bulk (52%) of Australia's exports. Australia's comparative advantage in the export of primary products is a reflection of the natural wealth of the Australian continent and its small domestic market; 21 million people occupy a continent the size of the contiguous United States. The relative size of the manufacturing sector has been declining for several decades, but has now steadied at around 10% of GDP. Australia currently enjoys a record-high terms-of-trade (TOT) that is 30% above its long-run average, reflecting the rise in global commodity prices created by booming demand in China and the drop in prices for imports for manufactured goods, mainly from China

Since the 1980s, Australia has undertaken significant structural reform of its economy and has transformed itself from an inward-looking, highly protected and regulated marketplace to an open, internationally competitive, export-oriented economy. Key economic reforms included unilaterally reducing high tariffs and other protective barriers to free trade, floating the Australian dollar, deregulating the financial services sector, including liberalizing access for foreign banks, increasing flexibility in the labor market, reducing duplication and increasing efficiency between the federal and state branches of government, privatizing many government-owned monopolies, and reforming the taxation system, including introducing a broad-based Goods and Services Tax (GST) and large reductions in income tax rates.

Australia is now in its 16th year of uninterrupted economic expansion and enjoys a higher standard of living than any G7 country other than the United States. Australia's economic standing in the world is a result of a commitment to best-practice macroeconomic policy settings including the delegation of the conduct of monetary policy to the independent Reserve Bank of Australia, and a broad acceptance of prudent fiscal policy where the government aims for fiscal balance over the economic cycle. The Australian Government has zero net debt and, through the "Future Fund", is building a net asset position to deal with future liabilities resulting from an aging population. The Australian economy is expected to grow at around 3.5% in 2007.

Two issues, national infrastructure and climate change, currently dominate thinking about economic policy in Australia. The Australian economy is booming and is operating at close to capacity with unemployment at a 32-year low of 4.2%. Both the federal and state governments have recognized the need to invest heavily in water, transport, ports, telecommunications, and education infrastructure to expand Australia's supply capacity. Australia may be coming out of the severe drought conditions it has experienced over the last 5 years, and above-average rainfall has been predicted for 2007. This should somewhat reduce the intense economic and political pressure on governments to build dams, water-recycling facilities, and desalination plants in drought-affected cities such as Brisbane, Canberra, and Perth.

The second significant issue is climate change. A recent report commissioned by the Prime Minister recommended a domestic carbon emissions trading scheme. It also recommended that Australia take an active role in developing a future global carbon emissions trading system. Regardless of the outcome of the federal election due in late 2007, Australia is now committed to adopting a domestic carbon trading system in the 2010-2012 timeframe.

The Australia-U.S. Free Trade Agreement (AUSFTA) entered into force on January 1, 2005. The AUSFTA marks the first FTA the U.S. has concluded with a developed economy since the U.S.-Canada FTA in 1988. Australia has also completed FTAs with Singapore and Thailand and is pursuing other FTAs, including with China and Japan. A burgeoning trade relationship marked by ongoing, multi-billion dollar resource export contracts and rising manufactured imports has driven FTA negotiations with China. Parallel efforts are underway with Malaysia and the Association of Southeast Asian Nations (ASEAN). The Australian Government has restated its commitment to achieving high-quality FTAs with economies in the Asia-Pacific.

FOREIGN RELATIONS of Australia
Australia has been active participant in international affairs since World War I and since then has fought beside the United States and other Allies in every significant conflict to the present day. In 1944, it concluded an agreement with New Zealand dealing with the security, welfare, and advancement of the people of the independent territories of the Pacific (the ANZAC pact). After the war, Australia played a role in the Far Eastern Commission in Japan and supported Indonesian independence during that country's revolt against the Dutch (1945-49). Australia was one of the founders of both the United Nations and the South Pacific Commission (1947), and in 1950, it proposed the Colombo Plan to assist developing countries in Asia. In addition to contributing to UN forces in Korea--it was the first country to announce it would do so after the United States--Australia sent troops to assist in putting down the communist revolt in Malaya in 1948-60 and later to combat the Indonesian-supported invasion of Sarawak in 1963-65. The U.S., Australia and New Zealand signed the ANZUS Treaty in 1951, which remains Australia's only formal security treaty alliance. Australia also sent troops to assist South Vietnamese and U.S. forces in Vietnam and joined coalition forces in the Persian Gulf conflict in 1991, in Afghanistan in 2002, and in Iraq in 2003.

Australia has been active in the Australia-New Zealand-U.K. agreement and the Five-Power Defense Arrangements--successive arrangements with Britain and New Zealand to ensure the security of Singapore and Malaysia.

One of the drafters of the UN Charter, Australia has given firm support to the United Nations and its specialized agencies. It was a member of the Security Council in 1986-87, a member of the Economic and Social Council for 1986-89, and a member of the UN Human Rights Commission for 1994-96 and 2003-2005. Australia takes a prominent part in many other UN activities, including peacekeeping, nonproliferation and disarmament negotiations, and narcotics control. Australia also is active in meetings of the Commonwealth Regional Heads of Government and the Pacific Islands Forum, and has been a leader in the Cairns Group--countries pressing for agricultural trade reform in World Trade Organization (WTO) negotiations--and in founding the APEC forum. In 2002, Australia joined the International Criminal Court.

Australia has devoted particular attention to relations between developed and developing nations, with emphasis on the ten countries of the Association of Southeast Asian Nations (ASEAN) and the island states of the South Pacific. Australia is an active participant in the ASEAN Regional Forum (ARF), which promotes regional cooperation on security issues, and was invited to the East Asia Summit as an inaugural member in 2005. In September 1999, acting under a UN Security Council mandate, Australia led an international coalition to restore order in East Timor upon Indonesia's withdrawal from that territory. In 2006, Australia again participated in an international peacekeeping operation in East Timor. Australia led a regional mission to restore law and order in Solomon Islands in 2003 and again in 2006.

In 2006, the government committed to doubling Australia's official development assistance to $4 billion a year by 2010. Australia budgeted $2.48 billion ($A2.95 billion) as official development assistance in FY 2006-2007, and has budgeted $2.66 billion ($A3.16billion) in 2007-2008. The Australian aid program is currently concentrated in Southeast Asia (Papua New Guinea--PNG--is the largest-single recipient) and the Pacific Islands. In 2004, Australia commenced a 5-year $0.8 billion ($A1.1 billion) Enhanced Cooperation Program (ECP), which involved government officials working alongside their PNG counterparts. The future of the program was called into question in 2005, however, when ECP immunity provisions for Australian officials were successfully challenged in the PNG high court. Selected aid flows are allocated to Africa, South Asia, and reconstruction in Afghanistan and Iraq. Contributions to multilateral organizations and other expenses account for about one-third of the foreign assistance budget.

ANZUS AND DEFENSE
The Australia, New Zealand, United States (ANZUS) security treaty was concluded at San Francisco on September 1, 1951, and entered into force on April 29, 1952. The treaty bound the signatories to recognize that an armed attack in the Pacific area on any of them would endanger the peace and safety of the others. It committed them to consult in the event of a threat and, in the event of attack, to meet the common danger in accordance with their respective constitutional processes. The three nations also pledged to maintain and develop individual and collective capabilities to resist attack.

In 1985, the nature of the ANZUS alliance changed after the Government of New Zealand refused access to its ports by nuclear-weapons-capable and nuclear-powered ships of the U.S. Navy. The United States suspended defense obligations to New Zealand, and annual bilateral meetings between the U.S. Secretary of State and the Australian Foreign Minister replaced annual meetings of the ANZUS Council of Foreign Ministers. The first bilateral meeting was held in Canberra in 1985. At the second, in San Francisco in 1986, the United States and Australia announced that the United States was suspending its treaty security obligations to New Zealand pending the restoration of port access. Subsequent bilateral Australia-U.S. Ministerial (AUSMIN) meetings have alternated between Australia and the United States. The 21st AUSMIN meeting took place in Washington, DC, on December 12, 2006.

The U.S.-Australia alliance under the ANZUS Treaty remains in full force. Defense ministers of one or both nations have joined the annual ministerial meetings, which are supplemented by consultations between the U.S. Combatant Commander, Pacific and the Australian Chief of Defense Force. There also are regular civilian and military consultations between the two governments at lower levels.

ANZUS has no integrated defense structure or dedicated forces. However, in fulfillment of ANZUS obligations, Australia and the United States conduct a variety of joint activities. These include military exercises ranging from naval and landing exercises at the task-group level to battalion-level special forces training to numerous smaller-scale exercises, assigning officers to each other's armed services, and standardizing, where possible, equipment and operational doctrine. The two countries also operate joint defense facilities in Australia.

Following the terrorist attacks on the United States on September 11, 2001, Australian Prime Minister Howard and U.S. President George Bush jointly invoked the ANZUS Treaty for the first time on September 14, 2001. Australia was one of the earliest participants in Operation Enduring Freedom. Australian Defense Forces participated in coalition military action against Iraq in Operation Iraqi Freedom. Australian military and civilian specialists are participating in the training of Iraqi security forces and the reconstruction of Iraq. Australian Special Forces redeployed to Afghanistan to help provide security for the country's September 18, 2005 elections. Based on growing defense commitments, Australia decided to increase the Australian Army from 26,000 to 30,000 over the next several years. This will enable the reestablishment of two infantry battalions, as well as enabling troops, such as a new unmanned aerial vehicle (UAV) unit.

After a review in 2000 of Australia's future defense needs, the government made a commitment to increase defense spending by an average of 3% a year for the next 10 years. The Australian Defense Force numbers about 51,000 active duty personnel. The government plans to increase this to 57,000 within the next decade. The Royal Australian Navy's (RAN) front-line fleet currently includes 12 frigates, including 4 of the Adelaide class and 7 Australian-built ANZAC class, with 1 more scheduled for delivery. The last of six submarines of the new, indigenous Collins class was commissioned in March 2003. In August 2004, Australia selected the Aegis Combat Control System for its three air warfare destroyers (AWD), which will start coming into service in 2013. In June 2007, Australia selected the Spanish F-100 as the hull design for the AWD. The F/A-18 fighter, built in Australia under license from the U.S. manufacturer, is the principal combat aircraft of the Royal Australian Air Force, backed by the U.S.-built F-111 strike aircraft. In October 2002, Australia became a Level III partner in the U.S.-led Joint Strike Fighter (JSF) program. The F-111 strike aircraft are scheduled to exit service by 2010 and will be replaced by 24 Boeing F/A-18F Superhornet fighters as an interim strike capability until Australia completes its projected buy of up to 100 JSF aircraft beginning in 2013 and running through 2020. The Royal Australian Air Force (RAAF) took its first delivery of a planned buy of 4 Lockheed C-17 strategic airlift aircraft in December 2006. In addition, Boeing will provide the Commonwealth of Australia's RAAF with an Airborne Early Warning and Control (AEW&C) system based on the Next-Generation 737-700 aircraft as the airborne platform. Recent U.S. sales to the Royal Australian Army include the M1A1 AIM tank, as well as Hellfire and JAVELIN munitions.

U.S.-AUSTRALIAN RELATIONS
The World War II experience, similarities in culture and historical background, and shared democratic values have made U.S. relations with Australia exceptionally strong and close. Ties linking the two nations cover the entire spectrum of international relations--from commercial, cultural, and environmental contacts to political and defense cooperation. Two-way trade reached almost $25 billion in 2005-2006. More than 456,000 Americans visited Australia in 2006.

Traditional friendship is reinforced by the wide range of common interests and similar views on most major international questions. For example, both countries sent military forces to the Persian Gulf in support of UN Security Council resolutions relating to Iraq's occupation of Kuwait; both attach high priority to controlling and eventually eliminating chemical weapons, other weapons of mass destruction, and anti-personnel landmines; and both work closely on global environmental issues such as slowing climate change and preserving coral reefs. The Australian Government and opposition share the view that Australia's security depends on firm ties with the United States, and the ANZUS Treaty enjoys broad bipartisan support. Recent Presidential visits to Australia (in 1991, 1996 and 2003), a Vice Presidential visit in February 2007, and Australian Prime Ministerial visits to the United States (in 1995, 1997, 1999, 2001, 2002, 2003, 2004, 2005, and 2006) have underscored the strength and closeness of the alliance.

The bilateral Australia-U.S. Free Trade Agreement (AUSFTA) entered into force on January 1, 2005. This comprehensive agreement, only the second FTA the U.S. had negotiated with a developed nation, substantially liberalizes an already vibrant trade and investment relationship. The AUSFTA also creates a range of ongoing working groups and committees designed to explore further trade reform in the bilateral context.

Both countries share a commitment to liberalizing global trade. They work together very closely in the World Trade Organization (WTO), and both are active members of the Asia-Pacific Economic Cooperation (APEC) forum.

A number of U.S. institutions conduct scientific activities in Australia because of its geographical position, large land mass, advanced technology, and, above all, the ready cooperation of its government and scientists. In 2005, a bilateral science and technology agreement was renewed. Under another agreement dating back to 1960 and since renewed, the U.S. National Aeronautics and Space Administration (NASA) maintains in Australia one of its largest and most important program outside the United States, including a number of tracking facilities vital to the U.S. space program. Indicative of the broad-ranging U.S.-Australian cooperation on other global issues, a Mutual Legal Assistance Treaty (MLAT) was concluded in 1997, enhancing already close bilateral cooperation on legal and counter-narcotics issues. In 2001, the U.S. and Australia signed a new tax treaty and a bilateral social security agreement. The U.S. Studies Centre was launched in 2006 at the University of Sydney with Commonwealth funding of Au$25 million. In April 2007, Australia and the U.S. agreed to each resettle up to 200 refugees processed in the other country each year as a means of deterring unauthorized arrivals and people smugglers.

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Introduction Australia
Background:
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 pollution, particularly depletion of the ozone layer, and management and conservation of coastal areas, especially the Great Barrier Reef.
Geography Australia
Location:
Oceania, continent between the Indian Ocean and the South Pacific Ocean
Geographic coordinates:
27 00 S, 133 00 E
Map references:
Oceania
Area:
total: 7,686,850 sq km
land: 7,617,930 sq km
water: 68,920 sq km
note: includes Lord Howe Island and Macquarie Island
Area - comparative:
slightly smaller than the US contiguous 48 states
Land boundaries:
0 km
Coastline:
25,760 km
Maritime claims:
territorial sea: 12 nm
contiguous zone: 24 nm
exclusive economic zone: 200 nm
continental shelf: 200 nm or to the edge of the continental margin
Climate:
generally arid to semiarid; temperate in south and east; tropical in north
Terrain:
mostly low plateau with deserts; fertile plain in southeast
Elevation extremes:
lowest point: Lake Eyre -15 m
highest point: Mount Kosciuszko 2,229 m
Natural resources:
bauxite, coal, iron ore, copper, tin, gold, silver, uranium, nickel, tungsten, mineral sands, lead, zinc, diamonds, natural gas, petroleum
Land use:
arable land: 6.15% (includes about 27 million hectares of cultivated grassland)
permanent crops: 0.04%
other: 93.81% (2005)
Irrigated land:
25,450 sq km (2003)
Natural hazards:
cyclones along the coast; severe droughts; forest fires
Environment - current issues:
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
Environment - international agreements:
party to: Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Biodiversity, Climate Change, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
signed, but not ratified: Climate Change-Kyoto Protocol
Geography - note:
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
People Australia
Population:
20,434,176 (July 2007 est.)
Age structure:
0-14 years: 19.3% (male 2,023,375/female 1,929,229)
15-64 years: 67.4% (male 6,945,068/female 6,831,653)
65 years and over: 13.2% (male 1,197,494/female 1,507,357) (2007 est.)
Median age:
total: 37.1 years
male: 36.3 years
female: 38 years (2007 est.)
Population growth rate:
0.824% (2007 est.)
Birth rate:
12.02 births/1,000 population (2007 est.)
Death rate:
7.56 deaths/1,000 population (2007 est.)
Net migration rate:
3.78 migrant(s)/1,000 population (2007 est.)
Sex ratio:
at birth: 1.05 male(s)/female
under 15 years: 1.049 male(s)/female
15-64 years: 1.017 male(s)/female
65 years and over: 0.794 male(s)/female
total population: 0.99 male(s)/female (2007 est.)
Infant mortality rate:
total: 4.57 deaths/1,000 live births
male: 4.95 deaths/1,000 live births
female: 4.16 deaths/1,000 live births (2007 est.)
Life expectancy at birth:
total population: 80.62 years
male: 77.75 years
female: 83.63 years (2007 est.)
Total fertility rate:
1.76 children born/woman (2007 est.)
HIV/AIDS - adult prevalence rate:
0.1% (2003 est.)
HIV/AIDS - people living with HIV/AIDS:
14,000 (2003 est.)
HIV/AIDS - deaths:
less than 200 (2003 est.)
Nationality:
noun: Australian(s)
adjective: Australian
Ethnic groups:
white 92%, Asian 7%, aboriginal and other 1%
Religions:
Catholic 26.4%, Anglican 20.5%, other Christian 20.5%, Buddhist 1.9%, Muslim 1.5%, other 1.2%, unspecified 12.7%, none 15.3% (2001 Census)
Languages:
English 79.1%, Chinese 2.1%, Italian 1.9%, other 11.1%, unspecified 5.8% (2001 Census)
Literacy:
definition: age 15 and over can read and write
total population: 99%
male: 99%
female: 99% (2003 est.)
Government Australia
Country name:
conventional long form: Commonwealth of Australia
conventional short form: Australia
Government type:
federal parliamentary democracy
Capital:
name: Canberra
geographic coordinates: 35 17 S, 149 08 E
time difference: UTC+10 (15 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in October; ends last Sunday in March
note: Australia is divided into three time zones
Administrative divisions:
6 states and 2 territories*; Australian Capital Territory*, New South Wales, Northern Territory*, Queensland, South Australia, Tasmania, Victoria, Western Australia
Dependent areas:
Ashmore and Cartier Islands, Christmas Island, Cocos (Keeling) Islands, Coral Sea Islands, Heard Island and McDonald Islands, Norfolk Island, Macquarie Island
Independence:
1 January 1901 (federation of UK colonies)
National holiday:
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)
Constitution:
9 July 1900, effective 1 January 1901
Legal system:
based on English common law; accepts compulsory ICJ jurisdiction, with reservations
Suffrage:
18 years of age; universal and compulsory
Executive branch:
chief of state: Queen of Australia ELIZABETH II (since 6 February 1952); represented by Governor General Maj. Gen. (Ret.) Michael JEFFERY (since 11 August 2003)
head of government: Prime Minister John Winston HOWARD (since 11 March 1996); Deputy Prime Minister Mark VAILE (since 6 July 2005)
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: none; the monarch 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
note: government coalition - Liberal Party and National Party
Legislative branch:
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 9 October 2004 (next to be held no later than June 2008); House of Representatives - last held 9 October 2004 (next to be called no later than November 2007)
election results: Senate - percent of vote by party - NA; seats by party - Liberal Party-National Party coalition 39, Australian Labor Party 28, Australian Greens 4, Democrats 4, Family First Party 1; House of Representatives - percent of vote by party - NA%; seats by party - Liberal Party-National Party coalition 87, Australian Labor Party 60, independents 3
Judicial branch:
High Court (the chief justice and six other justices are appointed by the governor general)
Political parties and leaders:
Australian Democrats [Lyn ALLISON]; Australian Greens [Bob BROWN]; Australian Labor Party [Kevin RUDD]; Country Liberal Party [Jodeen CARNEY]; Family First Party [Steve FIELDING]; Liberal Party [John Winston HOWARD]; The Nationals [Mark VAILE]
International organization participation:
ANZUS, APEC, ARF, AsDB, ASEAN (dialogue partner), Australia Group, BIS, C, CP, EAS, EBRD, FAO, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, NAM (guest), NEA, NSG, OECD, OPCW, Paris Club, PCA, PIF, Sparteca, SPC, UN, UNCTAD, UNESCO, UNHCR, UNMIS, UNRWA, UNTSO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO, ZC
Diplomatic representation in the US:
chief of mission: Ambassador Dennis J. RICHARDSON
chancery: 1601 Massachusetts Avenue NW, Washington, DC 20036
telephone: [1] (202) 797-3000
FAX: [1] (202) 797-3168
consulate(s) general: Atlanta, Chicago, Honolulu, Los Angeles, New York, San Francisco
Diplomatic representation from the US:
chief of mission: Ambassador Robert D. McCALLUM, Jr.
embassy: Moonah Place, Yarralumla, Canberra, Australian Capital Territory 2600
mailing address: APO AP 96549
telephone: [61] (02) 6214-5600
FAX: [61] (02) 6214-5970
consulate(s) general: Melbourne, Perth, Sydney
Flag description:
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
Economy Australia
Economy - overview:
Australia has an enviable Western-style capitalist economy with a per capita GDP on par with the four dominant West European economies. Robust business and consumer confidence and high export prices for raw materials and agricultural products are fueling the economy. Australia's emphasis on reforms, low inflation, and growing ties with China are other key factors behind the economy's strength. Drought and strong import demand pushed the trade deficit up in recent years, although the trade balance improved in 2006. Housing prices probably peaked in 2005, diminishing the prospect that interest rates would be raised to prevent a speculative bubble. Conservative fiscal policies have kept Australia's budget in surplus since 2002.
GDP (purchasing power parity):
$674.6 billion (2006 est.)
GDP (official exchange rate):
$644.7 billion (2006 est.)
GDP - real growth rate:
2.7% (2006 est.)
GDP - per capita (PPP):
$33,300 (2006 est.)
GDP - composition by sector:
agriculture: 3.8%
industry: 26.2%
services: 70% (2005 est.)
Labor force:
10.66 million (2006 est.)
Labor force - by occupation:
agriculture: 3.6%
industry: 21.2%
services: 75.2% (2004 est.)
Unemployment rate:
4.9% (2006 est.)
Population below poverty line:
NA%
Household income or consumption by percentage share:
lowest 10%: 2%
highest 10%: 25.4% (1994)
Distribution of family income - Gini index:
35.2 (1994)
Inflation rate (consumer prices):
3.8% (2006 est.)
Investment (gross fixed):
26.8% of GDP (2006 est.)
Budget:
revenues: $267 billion
expenditures: $258 billion; including capital expenditures of $NA (2006 est.)
Public debt:
14.1% of GDP (2006 est.)
Agriculture - products:
wheat, barley, sugarcane, fruits, cattle, sheep, poultry
Industries:
mining, industrial and transportation equipment, food processing, chemicals, steel
Industrial production growth rate:
-3.5% (2006 est.)
Electricity - production:
225.3 billion kWh (2004)
Electricity - production by source:
fossil fuel: 90.8%
hydro: 8.3%
nuclear: 0%
other: 0.9% (2001)
Electricity - consumption:
209.5 billion kWh (2004)
Electricity - exports:
0 kWh (2004)
Electricity - imports:
0 kWh (2004)
Oil - production:
530,000 bbl/day (2005 est.)
Oil - consumption:
877,300 bbl/day (2004 est.)
Oil - exports:
523,400 bbl/day (2001)
Oil - imports:
530,800 bbl/day (2001)
Oil - proved reserves:
3.664 billion bbl (1 January 2002)
Natural gas - production:
37.03 billion cu m (2004 est.)
Natural gas - consumption:
26.37 billion cu m (2004 est.)
Natural gas - exports:
10.66 billion cu m (2004 est.)
Natural gas - imports:
0 cu m (2004 est.)
Natural gas - proved reserves:
821.2 billion cu m (1 January 2005 est.)
Current account balance:
-$41.62 billion (2006 est.)
Exports:
$117 billion (2006 est.)
Exports - commodities:
coal, gold, meat, wool, alumina, iron ore, wheat, machinery and transport equipment
Exports - partners:
Japan 19.6%, China 12.3%, South Korea 7.5%, US 6.2%, India 5.5%, NZ 5.5%, UK 5% (2006)
Imports:
$127.7 billion (2006 est.)
Imports - commodities:
machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products
Imports - partners:
China 14.4%, US 14.1%, Japan 9.6%, Singapore 6%, Germany 5.1% (2006)
Reserves of foreign exchange and gold:
$48.25 billion (2006 est.)
Debt - external:
$585.1 billion (30 June 2006 est.)
Economic aid - donor:
ODA, $894 million (FY99/00)
Currency (code):
Australian dollar (AUD)
Currency code:
AUD
Exchange rates:
Australian dollars per US dollar - 1.3285 (2006), 1.3095 (2005), 1.3598 (2004), 1.5419 (2003), 1.8406 (2002)
Fiscal year:
1 July - 30 June
Communications Australia
Telephones - main lines in use:
11.46 million (2005)
Telephones - mobile cellular:
18.42 million (2005)
Telephone system:
general assessment: excellent domestic and international service
domestic: domestic satellite system; much use of radiotelephone in areas of low population density; rapid growth of mobile cellular telephones
international: country code - 61; submarine cables to New Zealand, Papua New Guinea, and Indonesia; satellite earth stations - 19 (10 Intelsat - 4 Indian Ocean and 6 Pacific Ocean, 2 Inmarsat - Indian and Pacific Ocean regions, 2 Globalstar, 5 other) (2005)
Radio broadcast stations:
AM 262, FM 345, shortwave 1 (1998)
Radios:
25.5 million (1997)
Television broadcast stations:
104 (1997)
Televisions:
10.15 million (1997)
Internet country code:
.au
Internet hosts:
7.773 million (2006)
Internet Service Providers (ISPs):
571 (2002)
Internet users:
14.664 million (2006)
Transportation Australia
Airports:
455 (2006)
Airports - with paved runways:
total: 311
over 3,047 m: 10
2,438 to 3,047 m: 12
1,524 to 2,437 m: 133
914 to 1,523 m: 143
under 914 m: 13 (2006)
Airports - with unpaved runways:
total: 144
1,524 to 2,437 m: 18
914 to 1,523 m: 111
under 914 m: 15 (2006)
Heliports:
1 (2006)
Pipelines:
condensate/gas 546 km; gas 31,323 km; liquid petroleum gas 240 km; oil 4,808 km; oil/gas/water 110 km (2006)
Railways:
total: 47,738 km
broad gauge: 4,015 km 1.600-m gauge
standard gauge: 28,662 km 1.435-m gauge (1,397 km electrified)
narrow gauge: 14,831 km 1.067-m gauge (2,462 km electrified)
dual gauge: 230 km dual gauge (2005)
Roadways:
total: 810,641 km
paved: 336,962 km
unpaved: 473,679 km (2004)
Waterways:
2,000 km (mainly used for recreation on Murray and Murray-Darling river systems) (2006)
Merchant marine:
total: 53 ships (1000 GRT or over) 1,361,000 GRT/1,532,874 DWT
by type: bulk carrier 17, cargo 4, chemical tanker 3, container 1, liquefied gas 4, passenger 6, passenger/cargo 7, petroleum tanker 6, roll on/roll off 5
foreign-owned: 17 (Canada 1, France 3, Germany 3, Japan 1, Netherlands 2, Norway 1, Philippines 1, UK 2, US 3)
registered in other countries: 34 (Antigua and Barbuda 1, Bahamas 2, Bermuda 3, Fiji 1, Hong Kong 1, Liberia 2, Marshall Islands 2, Netherlands 1, NZ 2, Panama 3, Portugal 1, Singapore 7, Tonga 1, UK 3, US 2, Vanuatu 2) (2006)
Ports and terminals:
Brisbane, Dampier, Fremantle, Gladstone, Hay Point, Melbourne, Newcastle, Port Hedland, Port Kembla, Port Walcott, Sydney
Military Australia
Military branches:
Australian Defense Force (ADF): Australian Army, Royal Australian Navy, Royal Australian Air Force, Special Operations Command (2006)
Military service age and obligation:
16 years of age for voluntary service; women allowed to serve in Army combat units in non-combat support roles (2001)
Manpower available for military service:
males age 18-49: 4,943,676
females age 18-49: 4,821,264 (2005 est.)
Manpower fit for military service:
males age 16-49: 4,092,717
females age 16-49: 3,983,447 (2005 est.)
Manpower reaching military service age annually:
males age 18-49: 142,158
females age 16-49: 135,675 (2005 est.)
Military expenditures - percent of GDP:
2.4% (2006)
Transnational Issues Australia
Disputes - international:
East Timor and Australia agreed in 2005 to defer the disputed portion of the boundary for fifty years and to split hydrocarbon revenues evenly outside the Joint Petroleum Development Area covered by the 2002 Timor Sea Treaty; East Timor dispute hampers creation of a revised maritime boundary with Indonesia in the Timor Sea; Indonesian groups challenge Australia's claim to Ashmore and Cartier Islands; Australia closed parts of the Ashmore and Cartier Reserve to Indonesian traditional fishing and placed restrictions on certain catch; 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 (see Antarctica); in 2004 Australia submitted its claims to UN Commission on the Limits of the Continental Shelf (CLCS) to extend its continental margins covering over 3.37 million square kilometers or roughly thirty percent of its claimed exclusive economic zone; since 2003, Australian Defense Force leads the Regional Assistance Mission to the Solomon Islands (RAMSI) to maintain civil and political order and reinforce regional security
Illicit drugs:
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
 

Information gathered from the Central Intelligence Agency

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