During the mid 1770's, the British Crown faced many problems.  They had just lost their American Colonies following the American War of Independence in 1776.  Added to that  was the continued rising in power of other nations, especially the French.  It is a common thought that the reason for British colonization of Australia was solely because of the increasing number of convicts that were being held in British Jails, awaiting transportation, which was a common penalty at that time.  Although there is some truth in this claim, the other facts that weighed heavily on the British Crown was the fact that they feared the French would colonize Australia and claim it for themselves.  At that time the French had already claimed various islands in the Pacific, and had also begun to explore various areas of Australia's coastline.  So the British decided to embark on a policy of colonization of the land claimed for them in 1770, by Lieutenant James Cook.  With the glowing reports about Botany Bay, that had been written by Cook and Sir Joseph Banks, that location was chosen to be the first British settlement in Australia.  Although the transportation of convicts was partly a reason, their presence was also used so as to provide a cheap cost of labour for the new colony.

On 13th May 1787, Captain Arthur Phillip (who was to become the first Governor of the new colony) set sail with eleven ships bound for Botany Bay.  They have become known in Australian history as the "First Fleet".  On board there were a few civilian Officers, 250 Marines, (some of whom had wives and children) and also 759 convicts. (some who also had children).  They arrived at Botany Bay in mid January 1788.  However what they found was totally different to what Cook and Banks had described.  This is possibly because they had arrived in the middle of Australia's summer, and Cook had viewed the area at a more pleasant time of the year. (May 1770).  Phillip decided that Botany Bay was not suitable as a settlement and chose to move about sixteen kilometres (ten miles), further North.  On 26th January 1788, he hoisted the British Flag on the shores of what is now known as Bennelong Point, near where the current Sydney Opera House now stands. (Bennelong was the first Australian Aboriginal to be taken to England for "scientific studies")  The name given to the new Colony was New South Wales.  "Australia Day" has been celebrated on 26th January every year since that day.

For some time the whole Eastern part of Australia was known as New South Wales, with the exception of Tasmania, (then known as Van Diemen's Land).

Again fearing other Nations might claim it as their own, a penal colony was established at Port Arthur, on the island of Tasmania in 1802.  This colony (together with Norfolk Island) was used to house the most incorrigible of the convicts, and the conditions were harsh for those sentenced to see their punishment at the Port Arthur Penal Colony.

In 1824 a settlement was made at Port Essington (in what is now the Northern Territory), which was at that time a part of New South Wales.

There was a short lived attempt at a settlement on the Southern half of New South Wales (now Victoria) at Westernport in 1826 but that was abandoned in 1828.  In 1836 a settlement was formed at Port Phillip and in 1851, that part of the mainland formed the State that we now know as Victoria.

Still having no claim to the Western half of Australia, a decision was made to form a colony on the Swan River in what is now Western Australia in 1829.  There had been a small settlement prior to that by the British at King George Sound (now Albany) in 1827.

In 1836 another colony was established at what was to become South Australia.

Another colony had also been formed on the Brisbane River (Moreton Bay Settlement) and in 1859, that colony was named the State of Queensland and no longer a part of New South Wales.

Finally in 1869, the British established another settlement, at a place called Palmerston (Now Darwin), then a part of New South Wales.

By this time, the British had claimed the whole of the Australian mainland and also the island of Tasmania.  (For further information about the various States, see section on each State).

Of all the States, convicts were transported to New South Wales, Queensland, (Convicts were first transported to New South Wales, then moved to Moreton Bay Settlement), Tasmania and Western Australia.  Although no convicts were actually transported to Victoria or South Australia, there were those who had escaped from other locations and moved to what they considered a safe haven.  However if they were caught, they faced the same penalties as they would have in the original colony as all colonies came under the same British law.

With continued reports about the treatment of convicts, and many Australian colonists opposed to transportation, the practice was ceased to New South Wales in 1840, and Tasmania in 1853.  Western Australia however stated they still required a cheap labour force, and transportation was reinstituted there between 1850 and 1868.

From the time of the arrival of the First Fleet, until the arrival of the last Convict vessel in Western Australia in 1868, a total of about 165,000 men, women and children were transported to Australia.  After they had served their period of time, many went on to become well regarded citizens of the new Australia, and some have left their marks on Australia's history in various ways.

From the initial settlement in 1788, most colonists remained within the basic area that is now metropolitan Sydney, until a way was found through the "Blue Mountains" to the West in 1813.  This opened up huge areas of land, much of which was suited to farming.  Of particular interest was the raising of sheep for wool.  After much cross breeding a sheep which was called the "Merino" was found to not only be very suited to Australian climate, but it also produced some of the best wool in the world.  Many of the early settlers made their fortunes raising sheep, especially when it was in such high demand in English woollen mills.  At one time Australian wool was being sold for One English Pound for each pound weight. (approximately $7.25 per kilogram or $16.00 per pound at current values)

Many people who became known as "Squatters" moved West and North from the established colonies to take up parcels of land throughout the 19th century, and by the end of the 19th century nearly all of Australia had been settled, with the exception of some very remote areas.

It has often been said "That Australia rode to wealth on a sheep's back"

One of the other major events of the 19th century was the discovery of gold at various locations throughout the country.  The major gold rushes were to (1) Victoria in 1851 (Ballarat and Bendigo), (2) Queensland in the 1860's (Gympie, Charters Towers and the Palmer River) and Western Australia in the 1880's (Coolgardie, Kalgoorlie, Boulder and Norseman)  In fact the gold rushes in Victoria were to lead to the only armed revolt against a government in Australia's history.  (See Eureka Stockade - Below).  The other claim that can be made is that some of the worlds largest nuggets of gold have been found in Australia.  The largest nugget that has ever been recorded in the world,   was found in Victoria on February 2nd 1869 and was called the "Welcome Stranger".  Unfortunately it was broken up and sold.  The weight of the nugget was about 72,028 grams (2,316 ounces) which would have a gold value of about $13,896,000.00 today, although as a nugget it would probably reach a far greater figure.

Following the discovery of gold in 1851 in Victoria, and the sudden influx of thousands to the gold diggings, the Victorian Government decided that in order to create some control they would introduce a Miner's Licence, which would give the holder the right to mine for gold on a 3.6 square metre area (about 12 square feet).  The licence would cost thirty shillings per month (about $24.00 at today's value), and random checks were made to ensure all those at the diggings had the required licence.  Although some struck it rich, many worked hard for little return and the licence fee was seen as exorbitant.  Following a series of other events where a number of miners were arrested, tensions mounted throughout October and November 1854.  On November 28th 1854 Military reinforcements arrived to attempt to pacify the situation.   On November 29th 1854, the flag that has become known as the "Eureka Flag" (see Australian Flag Page), was flown for the first time.  On December 1st 1854, a stockade was formed using all sorts of equipment such as overturned wagons etc, and the rebellious miners (or "Stockaders" as they became known) took their places within the stockade.   In the early hours of the morning on December 3rd 1854, a number of 276 Police and Military approached the stockade.   It is not known who actually opened fire, but in the ensuing battle 22 "Stockaders" and 4 Government men were killed.  The original Eureka Flag was torn down from its post and is now on display in the Ballarat Gallery.

All "Stockaders" were arrested and charged with treason, but following their trials they were all acquitted.   Although the event was short lived, it caused the Victorian Government to make many alterations to future thinking.

The leader of the rebellion, a man named Peter Lalor, was later elected as a Member of State Parliament.

The stand taken by the rebellious miners at Eureka, is often used as show of rebellion by some Australians who are disillusioned with one event or another. It is not uncommon for the Trade Union Movement and others, to wave the Eureka Flag as an open symbol of defiance.

As the 19th century was drawing to a close, feelings began to run high within Australia to form a self governing Commonwealth, and many people worked towards that aim during the 1890's.  The British had already removed their troops some years earlier, and each Colony was responsible for its own defence.  Communications between the Colonies were improving and East and West were connected by telegraph.  Australia was getting ready to lose its status as a Colony of Great Britain.