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Australia is an island continent. Australia the country, fits exactly into Australia the continent with no space left over. There is one country on the continent of Australia.
Australia is one country (The Commonwealth of Australia made up of six states and two major mainland territories). Details on the states and territories are found at:
http://en.wikipedia.org/wiki/States_and_territories_of_Australia
The names of the larger states/territories are:
New South Wales
Northern Territory
Queensland
South Australia
Tasmania
Victoria
Western Australia

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