The story of Australia is an epic where the New World meets the Old in a clash of two very different versions of history. It's only in recent years that the story of Indigenous Australians – here for more than 50,000 years before British colonisation – has come to occupy its rightful place at centre stage. It is a further sign, perhaps, that this dynamic, sometimes progressive and laid-back country is really starting to grow up.

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Michael Cathcart

Bio

Michael Cathcart is a well known broadcaster on ABC Radio National and has presented history programs on ABCTV.

Intruders Arrive

By sunrise the storm had passed. Zachary Hicks was keeping sleepy watch on the British ship Endeavour when suddenly he was wide awake. He summoned his commander, James Cook, who climbed into the brisk morning air to a miraculous sight. Ahead of them lay an uncharted country of wooded hills and gentle valleys. It was 19 April 1770. In the coming days Cook began to draw the first European map of Australia's eastern coast (the Dutch had arrived along the Western Australian coast more than a century before). He was also mapping the end of Aboriginal supremacy.

Two weeks later Cook led a party of men onto a narrow beach. As they waded ashore, two Aboriginal men stepped onto the sand and challenged the intruders with spears. Cook drove the men off with musket fire. For the rest of that week, the Aboriginal people and the intruders watched each other warily.

Cook's ship Endeavour was a floating annexe of London's leading scientific organisation, the Royal Society. The ship's gentlemen passengers included technical artists, scientists, an astronomer and a wealthy botanist named Joseph Banks. As Banks and his colleagues strode about the Indigenous Australians' territory, they were delighted by the mass of new plants they collected. (The showy flowers called banksia – which look like red, white or golden bottlebrushes – are named after Banks.)

The local Aboriginal people called the place Kurnell, but Cook gave it a foreign name: he called it 'Botany Bay'. The fertile eastern coastline of Australia is now festooned with Cook's place names − including Point Hicks, Hervey Bay (after an English admiral), Endeavour River and Point Solander (after one of the scientists on the Endeavour).

When the Endeavour reached the northern tip of Cape York, blue ocean opened up to the west. Cook and his men could smell the sea-route home. And on a small, hilly island ('Possession Island'), Cook raised the Union Jack. Amid volleys of gunfire, he claimed the eastern half of the continent for King George III.

Cook's intention was not to steal land from the Indigenous Australians. In fact he rather idealised them. 'They are far more happier than we Europeans,' he wrote. 'They think themselves provided with all the necessaries of Life and that they have no superfluities.' At most, his patriotic ceremony was intended to contain the territorial ambitions of the French, and of the Dutch, who had visited and mapped much of the western and southern coast over the previous two centuries. Indeed, Cook knew the western half of Australia as 'New Holland'.

Convict Beginnings

In 1788, 18 years after Cook's arrival, the English were back to stay. They arrived in a fleet of 11 ships, packed with supplies including weapons, tools, building materials and livestock. The ships also contained 751 convicts and around 250 soldiers, officials and their wives. This motley 'First Fleet' was under the command of a humane and diligent naval captain, Arthur Phillip. As his orders dictated, Phillip dropped anchor at Botany Bay. But the paradise that had so delighted Joseph Banks filled Phillip with dismay. The country was marshy, there was little healthy water, and the anchorage was exposed to wind and storm. So Phillip left his floating prison and embarked in a small boat to search for a better location. Just a short way up the coast his heart leapt as he sailed into the finest harbour in the world. There, in a small cove, in the idyllic lands of the Eora people, he established a British penal settlement on 26 January 1788. He renamed the place after the British Home Secretary, Lord Sydney.

The intruders set about clearing the trees and building shelters and were soon trying to grow crops. Phillip's official instructions urged him to colonise the land without doing violence to the local inhabitants, but they were shattered by the loss of their lands. Hundreds died of smallpox, and many of the survivors succumbed to alcoholism and despair.

In 1803 English officers established a second convict settlement in Van Diemen's Land (later called Tasmania). Soon, re-offenders filled the grim prison at Port Arthur, on the beautiful and wild southern coast near Hobart. In time, others would endure the senseless agonies of Norfolk Island prison in the remote Pacific Ocean.

So miserable were these convict beginnings that Australians long regarded them as a period of shame. But things have changed: today most white Australians are inclined to brag a little if they find a convict in their family tree. And there is a growing push among both Indigenous and non-Indigenous Australians to move the Australia Day holiday – celebrated on 26 January since 1994 – to a different day in recognition of the fact that this fateful date has long been referred to by many Indigenous Australians as 'Invasion Day'.

From Shackles to Freedom

At first, Sydney and Port Arthur depended on supplies brought in by ship. Anxious to develop productive farms, the government granted land to soldiers, officers and settlers. After 30 years of trial and error, the farms began to flourish. The most irascible and ruthless of these new landholders was John Macarthur. Along with his spirited wife Elizabeth, Macarthur pioneered the breeding of merino sheep on his verdant property near Sydney.

Macarthur was also a leading member of the 'Rum Corps', a clique of powerful officers who bullied successive governors (including William Bligh of Bounty fame) and grew rich by controlling much of Sydney's trade, notably rum. But the Corps' racketeering was ended in 1810 by a tough new governor named Lachlan Macquarie. Macquarie laid out the major roads of modern-day Sydney, built some fine public buildings (many of which were designed by talented convict-architect Francis Greenway) and helped to lay the foundations for a more civil society.

By now, word was reaching England that Australia offered cheap land and plenty of work, and adventurous migrants took to the oceans in search of their fortunes. At the same time the British government continued to transport prisoners.

In 1825 a party of soldiers and convicts established a penal settlement in the territory of the Yuggera people, close to modern-day Brisbane. Before long this warm, fertile region was attracting free settlers, who were soon busy farming, grazing, logging and mining.

Two New Settlements: Melbourne & Adelaide

In the cooler grasslands of Tasmania, the sheep farmers were also thriving. In the 1820s they waged a bloody war against the island's Aboriginal people, driving them to the brink of extinction. Now these settlers were hungry for more land. In 1835 an ambitious young man named John Batman sailed to Port Phillip Bay on the mainland. On the banks of the Yarra River, he chose the location for Melbourne, famously announcing 'This is the place for a village.' Batman persuaded local Indigenous Australians to 'sell' him their traditional lands (a whopping 250,000 hectares) for a crate of blankets, knives and knick-knacks, although some historians question whether the Indigenous parties to the treaty understood that they were signing away their ancestral lands.

At the same time, a private British company settled Adelaide in South Australia (SA). Proud to have no links with convicts, these God-fearing folks instituted a scheme under which their company sold land to well-heeled settlers and used the revenue to assist poor British labourers to emigrate. When these worthies earned enough to buy land from the company, that revenue would in turn pay the fare of another shipload of labourers. This charming theory collapsed in a welter of land speculation and bankruptcy, and in 1842 the South Australian Company yielded to government administration. By then miners had found rich deposits of silver, lead and copper at Burra, Kapunda and the Mt Lofty Ranges, and the settlement began to pay its way.

The Search for Land Continues

Each year, settlers pushed deeper into Aboriginal territories in search of pasture and water for their stock. These men became known as squatters – because they 'squatted' on Aboriginal lands – and many held this territory with a gun. To bring order and regulation to the frontier, from the 1830s the governments permitted the squatters to stay on these 'Crown lands' for payment of a nominal rent. Aboriginal stories tell of white men slaughtering groups of Indigenous Australians in reprisal for the killing of sheep or settlers. Later, across the country, people would also tell stories of black resistance leaders, including Yagan of Swan River, Pemulwuy of Sydney, and Jandamarra, the outlaw-hero of the Kimberley.

In time, many of the squatters reached a compromise with local tribes. Indigenous Australians took low- (or no-) paid jobs on sheep and cattle stations as drovers and domestic help. In return they remained on their traditional lands, adapting their cultures to their changing circumstances. This arrangement continued in outback pastoral regions until after WWII.

The newcomers had fantasised about the wonders waiting to be discovered from the moment they arrived. Before explorers crossed the Blue Mountains west of Sydney in 1813, some credulous souls imagined that China lay on the other side. Then explorers, surveyors and scientists began trading theories about inland Australia. Most spoke of an Australian Mississippi. Others predicted desert. An obsessive explorer named Charles Sturt (there's a fine statue of him looking lost in Adelaide's Victoria Sq) believed in an almost mystical inland sea.

The explorers' expeditions inland were mostly journeys into disappointment. But Australians made heroes of explorers who died in the wilderness (Ludwig Leichhardt, and the duo of Burke and Wills, are the most striking examples). It was as though the Victorian era believed that a nation could not be born until its men had shed their blood in battle − even if that battle was with the land itself.

Gold & Rebellion

Transportation of convicts to eastern Australia ceased in the 1840s. Soon after, in 1851, prospectors discovered gold in New South Wales (NSW) and central Victoria. The news hit the colonies with the force of a cyclone. Young men and some adventurous women from every social class headed for the diggings. Soon they were caught up in a great rush of prospectors, entertainers, publicans, 'sly-groggers' (illicit liquor-sellers), prostitutes and quacks from overseas.

In Victoria, the British governor was alarmed − both by the way the Victorian class system had been thrown into disarray, and by the need to finance law and order on the goldfields. His solution was to compel all miners to buy an expensive monthly licence, partly in the hope that the lower orders would be unable to afford it and return to their duties in town. But the lure of gold was too great. In the reckless excitement of the goldfields, the miners initially endured the thuggish troopers who enforced the government licence. After three years, however, the easy gold at Ballarat was gone, and miners were toiling in deep, water-sodden shafts. They were now infuriated by a corrupt and brutal system of law that held them in contempt. Under the leadership of a charismatic Irishman named Peter Lalor, they raised their own flag, the Southern Cross (which depicts a constellation of stars seen in the Australian night sky), and swore to defend their rights and liberties. They armed themselves and gathered inside a rough stockade at nearby Eureka, where they waited for the government to make its move.

In the pre-dawn of Sunday 3 December 1854, British troops attacked the stockade. It was all over in 15 terrifying minutes. The brutal and one-sided battle claimed the lives of 30 miners and five soldiers. But democracy was in the air and public opinion sided with the civilians. When 13 of the surviving rebels were tried for their lives, Melbourne juries set them free. Many Australians have found a kind of splendour in these events: the story of the Eureka Stockade is often told as a battle for nationhood and democracy − again illustrating the notion that any 'true' nation must be born out of blood. But these killings were tragically unnecessary. The eastern colonies were already in the process of establishing democratic parliaments, with the full support of the British authorities. In the 1880s Peter Lalor himself became speaker of the Victorian parliament.

The gold rush had also attracted boatloads of prospectors from China. These Asian settlers sometimes endured serious hostility from whites, and were the victims of ugly race riots on the goldfields at Lambing Flat (now called Young) in NSW in 1860−1. Chinese precincts soon developed in the backstreets of Sydney and Melbourne, and popular literature indulged in tales of Chinese opium dens, dingy gambling parlours and brothels. But many Chinese went on to establish themselves in business and, particularly, market gardening. Today the busy Chinatowns of the capital cities and the presence of Chinese restaurants in towns across the country are reminders of the vigorous role of the Chinese in Australia since the 1850s.

Gold and wool brought immense investment and gusto to Melbourne and Sydney. By the 1880s they were stylish modern cities, with gaslights in the streets, railways, electricity and that great new invention: the telegraph. In fact, the southern capital became known as 'Marvellous Melbourne', so opulent were its theatres, hotels, galleries and fashions. But the economy was overheating. Many politicians and speculators were engaged in corrupt land deals, while investors poured money into wild and fanciful ventures. It could not last.

Meanwhile, in the West…

Western Australia (WA) lagged behind the eastern colonies by about 50 years. Though Perth was settled by genteel colonists back in 1829, their material progress was handicapped by isolation, resistance by Indigenous peoples and the arid climate. It was not until the 1880s that the discovery of remote goldfields promised to gild the fortunes of the isolated colony.

At the time, the west was just entering its own period of self-government, and its first premier was a forceful, weather-beaten explorer named John Forrest. He saw that the mining industry would fail if the government did not provide a first-class harbour, efficient railways and reliable water supplies. Ignoring the threats of private contractors, he appointed the brilliant engineer CY O'Connor to design and build each of these as government projects.

Growing Nationalism

By the end of the 19th century, Australian nationalists tended to idealise 'the bush' and its people. The great forum for this 'bush nationalism' was the massively popular Bulletin magazine: its politics were egalitarian, democratic and republican, and its pages were filled with humour and sentiment about daily life written by a swag of writers, most notably Henry Lawson and AB 'Banjo' Paterson.

The 1890s were also a time of great trauma. As the speculative boom came crashing down, unemployment and hunger dealt cruelly with working-class families in the eastern colonies. However, Australian workers had developed a fierce sense that they were entitled to share in the country's prosperity. As the depression deepened, trade unions became more militant in their defence of workers' rights. At the same time, activists intent on winning legal reform established the Australian Labor Party (ALP).

Nationhood

On 1 January 1901 the six colonies of Australia became a federation of self-governing states – the Commonwealth of Australia. When the bewhiskered members of the new national parliament met in Melbourne, their first aim was to protect the identity and values of a European Australia from an influx of Asians and Pacific Islanders. Their solution was a law that became known as the White Australia policy, which would act as a racial tenet of faith in Australia for the next 70 years.

For whites who lived inside the charmed circle of citizenship, this was to be a model society, nestled in the skirts of the British Empire. Just one year later, white women won the right to vote in federal elections (South Australia had led the world by allowing women to vote in 1895). In a series of radical innovations, the government introduced a broad social-welfare scheme and protected Australian wage levels with import tariffs. Its radical mixture of capitalist dynamism and socialist compassion became known as the 'Australian settlement'.

Meanwhile, most Australians continued to live on the coasts of the continent. So forbidding was the arid, desolate inland that the great dry Lake Eyre was given a grim nickname: 'the Dead Heart' of the country. But one prime minister in particular, the dapper Alfred Deakin, dismissed such talk – he and his supporters were determined to triumph over this tyranny of the climate. Even before Federation, in the 1880s, Deakin championed irrigated farming on the Murray River at Mildura. Soon the district was green with grapevines and orchards.

Entering the World Stage

Living on the edge of a dry and forbidding land and isolated from the rest of the world, most Australians took comfort in the knowledge that they were a dominion of the British Empire. When WWI broke out in Europe in 1914, thousands of Australian men rallied to the Empire's call. They had their first taste of death on 25 April 1915, when the Australian and New Zealand Army Corps (the Anzacs) joined thousands of other British and French troops in an assault on the Gallipoli Peninsula in Turkey. It was eight months of fighting before the British commanders acknowledged that the tactic had failed – by then 8141 young Australians were dead. Before long the Australian Imperial Force was fighting in the killing fields of Europe. By the time the war ended, 60,000 Australian men had given their lives in military service. Ever since, on 25 April, Australians have gathered at war memorials around the country for the sad and solemn services of Anzac Day.

In the 1920s Australia embarked on a decade of chaotic change. Cars began to rival horses on the highway. Young Australians enjoyed American movies in the new cinemas, and – in an atmosphere of sexual freedom not equalled until the 1960s – partied and danced to American jazz. At the same time, popular enthusiasm for the British Empire grew more intense, as if imperial fervour were an antidote to postwar grief. As radicals and reactionaries clashed on the political stage, Australia careered wildly through the 1920s until it collapsed into the abyss of the Great Depression in 1929. World prices for wheat and wool plunged; unemployment brought misery to one in three households. Once again working people experienced the cruelty of a system that treated them as expendable, though for those who were wealthy − or who had jobs − the Depression was hardly noticeable. (If anything, the extreme deflation of the economy enhanced the purchasing power of their money.)

Against the backdrop of the Depression and economic desperation experienced by many ordinary Australians, the escape offered by cricket seemed more important than ever, and the 1932 Ashes series for a time unified the nation. The English team, under their captain Douglas Jardine, employed a violent new bowling tactic known as 'bodyline', its aim to unnerve Australia's star batsman, the devastatingly efficient Donald Bradman. The bitterness of the tour provoked a diplomatic crisis with Britain, and became part of Australian legend, but Bradman batted on. When he retired in 1948 he had an unsurpassed career average of 99.94 runs.

War with Japan

After 1933, the economy began to recover. The whirl of daily life was hardly dampened when Hitler hurled Europe into a new war in 1939. Though Australians had long feared Japan, they took it for granted that the British navy would keep them safe. In December 1941 Japan bombed the US fleet at Pearl Harbor. Weeks later, the 'impregnable' British naval base in Singapore crumbled, and before long thousands of Australians and other Allied troops were enduring the savagery of Japanese prisoner-of-war camps.

During WWII, the Northern Territory's capital Darwin was the front line for Allied action against the Japanese in the Pacific – and in 1942, Japan launched a devastating air attack on the city, killing 243 people and laying waste to its port. It was the only Australian city ever bombed in the war; official reports of the time downplayed the damage to buoy Australians' morale.

As the Japanese swept through Southeast Asia and into Papua New Guinea, the British announced that they could not spare any resources to defend Australia. But the legendary US commander General Douglas MacArthur saw that Australia was the perfect base for American operations in the Pacific. In a series of fierce battles on sea and land, Allied forces gradually turned back the Japanese advance. Significantly, it was the USA – not the British Empire – that saved Australia. The days of the nation's alliance with Britain alone were numbered.

Visionary Peace

When WWII ended, a new slogan rang through the land: 'Populate or Perish!' The Australian government embarked on an ambitious scheme to attract thousands of immigrants. With government assistance, people flocked from Britain as well as from non-English-speaking countries, including Greek, Italian, Slav, Serb, Croatian, Dutch and Polish migrants, and, later, people from Turkey, Lebanon and many others. These 'new Australians' were expected to assimilate into a suburban stereotype known as the 'Australian way of life'.

Many migrants found jobs in the growing manufacturing sector, in which companies such as General Motors and Ford operated with generous tariff support. In addition, the government embarked on audacious public works schemes, notably the mighty Snowy Mountains Hydro-Electric Scheme in the mountains near Canberra. Today, environmentalists point out the devastation caused by this huge network of tunnels, dams and power stations, but the Snowy scheme was an expression of a new-found postwar optimism and a testimony to the cooperation among the labourers of many nations who completed the project.

This era of growth and prosperity was dominated by Robert Menzies, the founder of the modern Liberal Party and Australia's longest-serving prime minister, with over 18 years in office. Menzies was steeped in British history and tradition, and liked to play the part of a sentimental monarchist; he was also a vigilant opponent of communism. As Asia succumbed to the chill of the Cold War, Australia and New Zealand entered a formal military alliance with the USA − the 1951 Anzus security pact. When the USA hurled its righteous fury into a civil war in Vietnam, Menzies committed Australian forces to the battle, introducing conscription for military service overseas. The following year Menzies retired, leaving his successors a bitter legacy – the antiwar movement would split Australia.

There was a feeling, too, among many artists, intellectuals and the younger generation that Menzies' Australia had become a rather dull, complacent country, more in love with American and British culture than with its own talents and stories. In an atmosphere of youthful rebellion and emerging nationalism, the Labor Party was elected to power in 1972 under the leadership of a brilliant, idealistic lawyer named Gough Whitlam. In just four short years his government transformed the country: he ended conscription and abolished all university fees, and he introduced a free universal health-care scheme, no-fault divorce, the principle of Aboriginal Australian land rights, and equal pay for women. The White Australia policy had been gradually falling into disuse, and under Whitlam it was finally abandoned altogether. By now, around one million migrants had arrived from non-English-speaking countries, and they had filled Australia with new languages, cultures, foods and ideas. Under Whitlam this achievement was embraced as 'multiculturalism'.

By 1975 the Whitlam government was rocked by a tempest of economic inflation and scandal. At the end of 1975 his government was controversially dismissed from office by the governor-general, the Queen's representative within Australia. But the general thrust of Whitlam's social reforms was continued by his successors. The principle of Indigeneous land rights was expanded, and from the 1970s Asian immigration increased, and multiculturalism became a new national orthodoxy. Not only that, but China and Japan far outstripped Europe as major trading partners − Australia's economic future lay in Asia.

Modern Challenges

Today Australia faces new challenges. In the 1970s the country began dismantling its protectionist scaffolding. New efficiency brought new prosperity. At the same time, wages and working conditions, which were once protected by an independent tribunal, became more vulnerable as egalitarianism gave way to competition. And after two centuries of development, the strains on the environment were starting to show − on water supplies, forests, soils, air quality and the oceans.

Under the conservative John Howard, Australia's second-longest-serving prime minister (1996−2007), the country grew closer than ever to the USA, joining the Americans in their war in Iraq. The government's harsh treatment of asylum seekers, its refusal to acknowledge the reality of climate change, its anti-union reforms and the prime minister's lack of empathy with Indigenous Australians dismayed more liberal-minded Australians. But Howard presided over a period of economic growth that emphasised the values of self-reliance and won him continuing support in middle Australia.

In 2007 Howard was defeated by the Labor Party's Kevin Rudd, an ex-diplomat who immediately issued a formal apology to Indigenous Australians for the injustices they had suffered over the past two centuries. Though it promised sweeping reforms in environment and education, the Rudd government found itself faced with a crisis when the world economy crashed in 2008; by 2010 it had cost Rudd his position. Incoming Prime Minister Julia Gillard, along with other world leaders, now faced three related challenges: climate change, a diminishing oil supply and a shrinking economy. This difficult landscape, shrinking popularity and ongoing agitations to return Rudd to the top job saw Gillard toppled and Rudd reinstated in 2013. Not three months later Rudd lost government to Tony Abbott's conservative Liberal-National Coalition in the 2013 federal election. With his own poll numbers slipping, Abbott fell to his Liberal Party colleague Malcolm Turnbull in 2015.