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Australia, officially the Commonwealth of Australia, has a complex relationship with the United Kingdom. While Australia is a sovereign country, it was formerly a Dominion of the British Empire, and the two countries continue to share economic and political ties. The UK is the second-largest foreign investor in Australia, and the two nations have a free trade agreement in place. Historically, Australia has been closely tied to the UK, with British colonists arriving in 1788 and exerting dominance over the continent by 1820. The six colonies federated in 1901 to form the Commonwealth of Australia, a self-governing Dominion within the British Empire. The final constitutional ties between the two countries ended in 1986, and Australia has since debated becoming a republic.
| Characteristics | Values |
|---|---|
| Australia's status in the British Empire | Australia was a self-governing Dominion in the British Empire |
| Current relationship with the UK | Australia is a Commonwealth realm and the two countries share a monarch, King Charles III |
| UK investment in Australia | The UK is the second-largest overall foreign investor in Australia, and Australia is the seventh-largest foreign direct investor in the UK |
| Australian land owned by the UK | The UK owns 2.4% of Australian agricultural land, and 53% of foreign-owned farmland |
| British influence in Australia | Streams of migration from the British Isles played a key role in Australia's development, and the people of Australia are predominantly of British or Irish origin |
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What You'll Learn
Australia's foreign-owned land
Australia has 12.3 percent, or around 48 million hectares, of foreign-owned agricultural land, according to the Australian Taxation Office's (ATO) annual Foreign Ownership of Land register for the year ending June 2022. This figure represents a 10% drop from the previous year, with Australian investors expanding their holdings due to improved seasonal conditions.
Foreign ownership is spread across the country, with Western Australia leading the way with 771,000 hectares, followed by New South Wales and the Australian Capital Territory with 675,000 hectares, and Queensland with 502,000 hectares. The Northern Territory (NT) was the only state or territory to record an increase in foreign-owned land, with a 2% rise to 14.533 million hectares, or 27.4% of all NT agricultural land.
In terms of foreign countries owning Australian land, China and the United Kingdom are the top two, with 7.786 million hectares and 7.295 million hectares, respectively. The majority of their holdings are leasehold. Following China and the UK, six other countries hold more than 2 million hectares of Australian agricultural land, including Canada, the Netherlands, the United States, the Bahamas, Germany, and Switzerland.
The ATO defines "foreign-owned" as entities with at least a 20% level of foreign ownership, so the register includes details even when most shareholders are Australian. Additionally, foreign investors must notify the ATO before acquiring residential land in Australia, and they may be subject to an annual vacancy fee if the property is not occupied or available for rent for an extended period.
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UK-Australia economic relations
Australia is not British-owned; it is a sovereign country and was recognised as such in 1931. However, the final constitutional ties between the United Kingdom and Australia were severed in 1986 with the passing of the Australia Act 1986.
Despite this, the UK and Australia still maintain a close relationship, with the UK being the second-largest overall foreign investor in Australia, and Australia being the seventh-largest foreign direct investor in Britain. The two countries have a long history of collaboration in military affairs and are members of the AUSCANNZUKUS security cooperation, which includes the Five Eyes intelligence-sharing alliance with the US, Canada, and New Zealand. They also share a monarch, King Charles III, and are both active members of the Commonwealth of Nations.
In 2016, an Australia-UK Trade Working Group was set up to negotiate a Free Trade Agreement for the UK post-Brexit. This agreement was signed on 17 December 2021 and included increased freedom of movement between the two countries. The UK is Australia's third-largest services trading partner, and Australia is the UK's eighth-largest two-way trading partner. Australia's principal merchandise exports to the UK are gold, alcoholic beverages, lead, and pearls and gems. The main merchandise imports from the UK are passenger motor vehicles, medicaments, and alcoholic beverages.
In March 2023, the two countries announced a new class of nuclear-powered submarine, the SSN-AUKUS, based on a UK submarine design that will incorporate technology from both countries and the US. The submarines will be built and operated by both the UK and Australia as part of a trilateral security partnership for the Indo-Pacific region, known as AUKUS. This partnership aims to "promote deeper information and technology sharing" and "foster deeper integration of security and defense-related science, technology, industrial bases, and supply chains".
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Australia's head of state
Australia, officially the Commonwealth of Australia, is a sovereign country. In 1901, six colonies federated and the Commonwealth of Australia was formed as a Dominion of the British Empire. The United Kingdom maintained control over its external relations, while Australia was self-governing in its domestic affairs. Over the next four decades, Australia gradually gained control over its external policy. The final constitutional ties between the United Kingdom and Australia ended in 1986 with the passing of the Australia Act 1986.
Despite this, the monarch of the United Kingdom is considered the de facto head of state of Australia. This position has been conferred upon King Charles III. The monarch is the locus of many oaths of allegiance, which are recited by various employees of the Crown, such as all members of the Commonwealth Parliament, most magistrates, judges, police officers, and justices of the peace. The prime minister, ministers, and parliamentary secretaries also make an oath of allegiance to the monarch.
In Australia, the monarch is represented by a governor-general, who is appointed by the monarch on the advice of the Australian prime minister. The governor-general has no real powers and must accept all decisions made by the prime minister. There is a decades-old republican movement in Australia, which aims to promote the idea that Australia does not need a foreign head of state or a governor-general representing them.
While Australia is no longer constitutionally tied to the United Kingdom, the two countries continue to share a monarch. They also have a robust bilateral dialogue at the head-of-government, ministerial, and senior official levels. In addition, the United Kingdom is the second-largest overall foreign investor in Australia, and Australia is the seventh-largest foreign direct investor in the United Kingdom.
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UK-Australia population movement
Australia, officially the Commonwealth of Australia, is a sovereign country. It was formed as a self-governing Dominion of the British Empire in 1901 when six colonies federated. While the new nation was sovereign when it came to its domestic affairs, the United Kingdom maintained control over its relations with the wider world. Over the next four decades, Australia gradually gained control over its external policy. The final constitutional ties between the United Kingdom and Australia ended in 1986 with the passing of the Australia Act 1986.
Despite this, the UK and Australia continue to share close ties. They are both Commonwealth realms, sharing a monarch, King Charles III, and are active members within the Commonwealth of Nations. The UK is the second-largest overall foreign investor in Australia, and Australia is the seventh-largest foreign direct investor in the UK. The two countries have also signed a bilateral free trade agreement, the Australia-United Kingdom Free Trade Agreement, in 2021.
In terms of population movement, there has been a notable flow of people from the UK to Australia over the years, with streams of migration from the British Isles playing a key role in Australia's development. According to the 2011 Australian Census, around 1.1 million Australians were born in the UK. As of June 2024, those born in England make up the largest group of overseas-born residents in Australia, with 964,000 people. This group had been decreasing but saw its first annual increase in over 10 years in 2024. The proportion of Australia's population born overseas has been increasing, with 31.5% of the population born outside Australia as of June 2024, up from 30.7% in 2023 and 29.5% in 2022.
While the COVID-19 pandemic caused a decline in immigration to Australia, with travel restrictions in place, the lifting of these restrictions in 2022 led to a subsequent increase in overseas migration into the country. Australia's population has been growing, with an annual growth of 484,000 people (1.8%) as of September 2024. The country's estimated resident population as of June 2024 was 27.2 million people, including 8.6 million people born overseas.
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UK-Australia defence agreements
Australia, officially the Commonwealth of Australia, is a sovereign country. In 1901, six colonies federated to form the Commonwealth of Australia as a self-governing Dominion in the British Empire. While Australia was sovereign when it came to its domestic affairs, the United Kingdom maintained control over its relations with the wider world. Over the following decades, Australia gradually gained control over its external policy. The final constitutional ties between the United Kingdom and Australia ended in 1986 with the passing of the Australia Act 1986.
Despite this, the UK and Australia continue to share a monarch, King Charles III, and are both active members of the Commonwealth of Nations. The two countries also share a dynamic and enduring relationship, with the UK being the second-largest overall foreign investor in Australia.
In March 2023, AUKUS announced that a new class of nuclear-powered submarines would be built based on a UK submarine design that would incorporate technology from the US. The submarines will be built and operated by both the UK and Australia.
On 21 March 2024, the UK and Australia signed a new Defence and Security Cooperation Agreement in Canberra. This agreement strengthens the partnership between the two nations and makes it easier for their defence forces to operate together in each other's countries. It also formalises the practice of the two nations consulting each other on issues that affect sovereignty and regional security. The agreement was signed by the UK's Defence Secretary Grant Shapps and the Australian Deputy Prime Minister and Defence Minister Richard Marles.
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Frequently asked questions
No, Australia is not British-owned. The six colonies federated in 1901 and the Commonwealth of Australia was formed as a self-governing Dominion of the British Empire. The final constitutional ties between the United Kingdom and Australia ended in 1986 with the passing of the Australia Act 1986.
Australia is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. The monarch of the United Kingdom, King Charles III, is considered the de facto head of state of Australia.
Yes, Australia is a part of the Commonwealth. Australia and the UK are both active members within the Commonwealth of Nations.
The UK and Australia have a robust bilateral relationship. The UK is the second-largest overall foreign investor in Australia, and Australia is the seventh-largest foreign direct investor in the UK. The two countries have also signed a defence and security cooperation agreement.
No, Australia is not a republic. While Australia is a self-governing nation, the monarch of the UK is considered the de facto head of state of Australia.
