Australia is a lot of things - a continent, an island, a commonwealth, a country, and a popular tourist destination all at the same time. Australia has 6 states (Queensland, Victoria, New South Wales, South Australia, Western Australia, and Tasmania; 2 major mainland territories (Australian Capital Territory and Northern Territory) and other minor territories.
Aside from Canberra, the capital, other cities include Sydney, Melbourne (both of which have been venues of the Olympic Games), Perth, and Adelaide.
(Video from youtube.com; posted by skitzostudios 10.06.07)