The biggest urban area of Australia is the most populous city in Australia and Oceania.
Australia . Australia 's capital is Canberra , and its largest urban area is Sydney . Melbourne ( [ ˈmɛlbərn ] ) is the capital and most populous city of the Australian state of Victoria , and the second-most populous city in Australia and Oceania . Sydney is the state capital of New South Wales and the most populous city in Australia and Oceania .