Australia's isolation as an island continent has done much to shape—and inhibit—its culture. The native Australian peoples developed their accommodation with the environment over a time of at least 40,500 years, during much of which contacts with the outside world, often hinging on changing sea levels, appear to have been fleeting. The convict heritage ensured that European perceptions of the environment were often determined by the sense of exile and alienation. Yet often the distance from Britain, and the isolation it imposed, served to strengthen rather than weaken ties with the cultural metropolis.

Australia considerably reflected the heritage of the British settlers. Customs were modified as the settlers adapted to the new nation and its exceptionally fine climate. A culture evolved that, although based on the British tradition, is unique to Australia. Many cities and towns have built or expanded art galleries and performing art centers. The architecturally stunning Sydney Opera House is the best known of the modern venues. Opera, ballet, and dance companies, symphony orchestras, artists, playwrights, and writers are supported by the Australia Council. Australia has many media companies, television, radio stations, newspapers, and magazines that contribute to local culture, although some are now owned by foreigners.

Australian actors such as Nicole Kidman, Rachel Griffiths, Cate Blanchett, Geoffrey Rush, Paul Hogan, and Heath Ledger have achieved high popularity in the United States. Australian movies and directors such as Peter Weir and Philip Noyes also are well known. Australia has had a remarkable school of painting since the early days of European settlement, and Australians with international reputations include Sidney Nolan, Russell Drysdale, and Arthur Boyd. Writers who have achieved world recognition include Thomas Keneally, Colleen McCullough, Nevil Shute, Morris West, Jill Ker Conway, and Nobel Prize winner Patrick White.