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* January: The Port Arthur massacre, in which 35 people are killed by a lone gunman, leads to strict gun control laws being introduced in Australia.
* March: The Australian Labor Party, led by Paul Keating, is defeated in the federal election by the Liberal Party, led by John Howard.
* September: Australia hosts the 26th Olympic Games in Sydney.
1997
* February: The Australian dollar is floated, ending years of government control over the currency.
* April: The Wik Peoples v State of Queensland High Court decision recognizes the native title rights of Aboriginal Australians over their traditional lands.
* November: The Kyoto Protocol on climate change is signed in Kyoto, Japan. Australia is one of the signatories to the protocol.
1998
* January: The introduction of the Goods and Services Tax (GST) replaces the wholesale sales tax.
* September: The Australian Stock Exchange (ASX) is launched, replacing the Australian Stock Exchange and the Sydney Futures Exchange.
1999
* February: Australia becomes a republic, ending its constitutional ties to the United Kingdom.
* September: East Timor votes for independence from Indonesia in a referendum. Australian-led peacekeeping forces are deployed to the country to help restore order.
2000
* May: The Sydney Olympics are held, showcasing Australia to the world.
* September: The Goods and Services Tax (GST) is increased from 10% to 15%.
2001
* September: The September 11 attacks in the United States trigger a global war on terror. Australia joins the US-led coalition in Afghanistan.
* December: The Australian Labor Party, led by Kim Beazley, is defeated in the federal election by the Liberal Party, led by John Howard.
2003
* March: Australian troops join the US-led invasion of Iraq.
* December: The Australian Labor Party, led by Mark Latham, is defeated in the federal election by the Liberal Party, led by John Howard.
2004
* December: The Australian Labor Party, led by Kim Beazley, is defeated in the federal election by the Liberal Party, led by John Howard.
2005
* March: The Australian Senate votes to withdraw Australian troops from Iraq.
* December: The Australian Labor Party, led by Kevin Rudd, wins the federal election, ending the Liberal Party's 11-year rule.
2006
* January: Kevin Rudd becomes Prime Minister of Australia.
* December: The Australian Labor Party, led by Kevin Rudd, wins a landslide victory in the federal election.
2007
* November: The Australian Labor Party, led by Kevin Rudd, is defeated in the federal election by the Liberal Party, led by John Howard.