Australia Australia,the largest country in Oceania,lies on the south coast of the Pacific.It covers an area of 7.6 million square kilometers.It has a population of over 10 million.Most of its people live in the east of the country by the sea.Canberra,the capital of Australia,is a beautiful city.Sydney is the biggest city in Australia,which has many places of interest.The Opera House is well known all over the world.The 2000 Olympic Games were held in Sydney.