If you are wondering whether Australia is a country or a continent, then the answer is, it is both a country and a continent. Australia lies in the southeast part of the Indian Ocean and to the south of Indonesia and Papua New Guinea.
To the east of Australia lies New Zealand and the Indian Ocean lies to its west. To the south of Australia is Antarctica. The mainland of Australia and the island of Tasmania across the Bass Strait are a part of the Australian continent. Kangaroo island, Cocos (Keeling) islands and Christmas island are the small islands in the continent of Australia.
Australia is the sixth largest country of the world and also the smallest continent of the world. There are seven continents in the world and one of them is Australia. The common view of a continent is that it is a large, continuous land which is mostly separated by vast water bodies. However, many of the continents are not separated by vast waters. Instead they are all connected by land, Australia being an exception.
Australia is engulfed by water from all its sides and therefore it fully meets the definition of a continent than any other continents. Australia is also a country and is known as the Commonwealth of Australia and was created in 1901 when British Parliament permitted the colonies to unite into a dominion.
Since then, Australia has governed its domestic policy even if the foreign policy was determined by the British government. In 1942, Australia got control over its foreign policy and became a fully sovereign country.
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