Australia was once part a larger empire.
Australia . After the European discovery of the continent by Dutch explorers in 1606 , Australia 's eastern half was claimed by Great Britain in 1770 and initially settled through penal transportation to the colony of New South Wales from 26 January 1788 . On 1 January 1901 , the six colonies federated , forming the Commonwealth of Australia . The Federation of Australia was the process by which the six separate British self-governing colonies of Queensland , New South Wales , Victoria , Tasmania , South Australia , and Western Australia agreed to unite and form the Commonwealth of Australia , establishing a system of federalism in Australia .