New South Wales was the first colony in Australia.
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 . The colony of New South Wales was a colony of the British Empire from 1788 to 1901 , when it became a State in the federal Commonwealth of Australia on 1 January 1901 .