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The major land masses of the Earth are referred to as the continents, Geologically there are six large distinct land masses tectonic plates), that make up the Earth's dry land. Although there is some conjecture about the separation of Asia forming a seventh. Whatever the case Australia happens to be one of these plates and also happened to be settled and have a universal government formed across the whole continent's tectonic plate) of which Tasmania is also a part.

Country refers to the organization of an area into a single territory as a nation or state. Australia has been a nation since January 1 1901, with a single national government. Although it is divided into states and territories which have their own state governments, they are all united as one nation.

Because most continents just happen to have developed into multiple countries ( for example, North America ( USA, Mexico, Canada) it sometimes confuses people to think of a country being a continent as well. One refers to the geographical form, the other is talking about the political structure.

And lets add a little more confusion to this, although the above is exactly correct, try explaining it to an American, then throw in that as well as being the only single country /continent, it is also the only continent island and country. Australia is a federation of English Colonies, that after Federation on Jan 1, 1901 become a single country (The Commonwealth of Australia).

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