Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. It is the largest country in Oceania and the world's sixth-largest country by total area. The neighbouring countries are Papua New Guinea, Indonesia, and East Timor to the north; the Solomon Islands and Vanuatu to the north-east; and New Zealand to the south-east. The population of 25 million is highly urbanised and heavily concentrated on the eastern seaboard. Australia's capital is Canberra, and its largest city is Sydney. The country's other major metropolitan areas are Melbourne, Brisbane, Perth, and Adelaide.
Indigenous Australians inhabited the continent for about 65,000 years prior to European discovery with the arrival of Dutch explorers in the early 17th century, who named it New Holland. In 1770, Australia's eastern half was claimed by Great Britain and initially settled through penal transportation to the colony of New South Wales from 26 January 1788, a date which became Australia's national day. The population grew steadily in subsequent decades, and by the time of an 1850s gold rush, most of the continent had been explored and an additional five self-governing crown colonies established. On 1 January 1901, the six colonies federated, forming the Commonwealth of Australia. Australia has since maintained a stable liberal democratic political system that functions as a federal parliamentary constitutional monarchy, comprising six states and ten territories.
Being the oldest, flattest and driest inhabited continent, with the least fertile soils, Australia has a landmass of 7,617,930 square kilometres (2,941,300 sq mi). A megadiverse country, its size gives it a wide variety of landscapes, with deserts in the centre, tropical rainforests in the north-east and mountain ranges in the south-east. Its population density, 2.8 inhabitants per square kilometre, remains among the lowest in the world. Australia generates its income from various sources including mining-related exports, telecommunications, banking, and manufacturing.
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For a topic outline on this subject, see Outline of Australia.