Present-day Australia is uninhabited until stone-culture peoples arrive, perhaps by boat across the waters separating the island from the Indonesia archipelago about 40,000 years ago. Australia is discovered by the Dutch explorer Willem Jansz, van Amsterdam in 1605. The Dutch name the region New Holland, but they don't settle in the continent. Also Portuguese, Spanish and English explorers observe New Holland. In 1770 Captain James Cook rediscovers the region and claims it for Britain. This leads in 1778 to the formation of the colony of New South Wales.

In the upcoming decennia parts of the colony become separate colonies: Van Diemen's Land in 1825 (later named Tasmania), South Australia in 1836, New Zealand in 1841, Victoria in 1851 and Queensland in 1859. Many but by no means all of the first settlers are convicts, condemned for offenses that today would often be thought trivial. The mid-19th century brings government policies to emancipate convicts and the government assists the immigration of free persons. Since 1850 the colonies are granted self-government. The discovery of gold in 1851 led to increased population, wealth, and trade. Politics in New South Wales is dominated by the Protectionist Party and the Free Trade Party. These parties are also active in the other Australian colonies.

In 1891 a proces of re-unification starts, that leads in 1901 to the merger of the colonies of New South Wales, Queensland, South Australia, Tasmania, Victoria and West Australia into the Commonwealth of Australia, which becomes a federal parliamentary democracy. The first prime minister is Edmund Barton of the Protectionist Party. When he becomes a judge at the High Court in 1903, he is succeeded by Alfred Deakin. In 1904 John Christian Watson of the social democratic, nationalist Australian Labor Party (ALP) becomes prime minister, later that year succeeded by George Reid of the Free Trade Party. Alfred Deakin becomes in 1905 prime minister again, but in 1908 Andrew Fisher of the ALP wins the elections. There is a quick shift in power and in 1909 Alfred Deakin becomes prime minister again. In 1910 Andrew Fisher wins the elections and returns as prime minister. The ALP loses the 1913 elections to the Liberal Party, a merger of the Protectionist and Free Trade Parties and Joseph Cook becomes prime minister. The ALP wins the 1914 elections. Andrew Fisher becomes prime minister, but he is suceeded in 1915 by William Hughes. In 1916 his party splits and he forms the National Labor Party (NLP). The NLP joins with the Liberal Party to merge into the new Nationalist Party of Australia (NPA). In 1923 he is succeeded by NPA partisan Stanley Bruce in a coalition with the Country Party (CP). Bruce loses the elections of 1929 and the ALP under James Scullin comes to power.

In 1931 the new United Australia Party (UAP), a merger of the NPA with dissident Labor members, wins the elections and its leader, Joseph Lyons becomes prime minister. Full independence is realized in 1931 by the Treaty of Westminster, ratified in 1942. Lyons is succeeded in 1939 by Robert Gordon Menzies. In 1941 the UAP loses the elections and the ALP comes to power under prime minister John Curtin. He is suceeded after his death in 1945 by Joseph Benedict Chifley. Chifley wins the 1946 elections over the conservative Liberal Party of Australia (LPA), the continuation of the UAP. In 1949 the LPA in a coalition with the County Party (CP) defeats the ALP and Robert Gordon Menzies becomes prime minister again. He is succeeded in 1966 by Harold Holt, in 1967 by John McEwen (CP), in 1968 by John Grey Gorton (LPA) and in 1971 by William McMahon of the LPA.

In 1972 the ALP under the leadership of Gough Whitlam returns to government, but it loses the elections of 1975. Malcom Fraser of the LPA becomes prime minister in a coalition of the LPA with the National Country Party (NCP, successor of the CP). Under Robert Hawke the ALP wins the elections of 1983 and Hawke becomes prime minister. This is continued after the elections of 1984, 1987 and 1990. Hawke's leadership is taken over by Paul Keating in 1991 and in 1993 he wins the elections. After winning five elections in a row the ALP loses power in 1996 to a coalition of the LPA and the National Party of Austrlia (NPA, successor of the NCP). John Howard becomes prime minister which he still is.