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Aside from the official announcement of the discovery of gold in May 1851, the most significant event of Australian gold history was the Eureka Stockade.

The Eureka Stockade occurred in Ballarat, Victoria, during the early years of the Australian goldrush. In the event, the gold miners rebelled against the miner's licence, which cost a monthly fee of 30 shillings and allowed the holder to work a meagre 3.6 metre square "claim". Licences had to be paid whether or not a digger found any gold. There were frequent licence hunts, during which the miners were ordered to produce proof of their licences, and this increased the sense of unrest.

Miners had sent previous delegations to the Victorian government, but the government refused to act on their behalf so, on 29 November 1854, the miners burned their licences in a mass display of resistance against the laws which controlled the miners. Following a widespread licence hunt the following day, on November 30, Irish immigrant and goldminer Peter Lalor was chosen to lead the rebellion.

On December 1, the miners began to construct a wooden barricade, a rather flimsy stockade from which they planned to make their stand against further licence arrests or other unreasonable displays of authority. Early in the morning on Sunday, 3 December 1854, 276 police and military personnel and several civilians stormed the stockade. It's unknown which side fired first, but ultimately 22 diggers and 5 troopers died in the battle that followed.

Although the rebellion itself failed in what it set out to do, it gained the attention of the Government. Following a Commission of Enquiry, changes were put in place. These included abolishing the monthly gold licences, which were replaced by an affordable annual miner's licence. The numbers of troopers were reduced significantly, and Legislative Council was expanded to allow representation to the major goldfields.

Peter Lalor and another representative, John Basson Humffray, were elected for Ballarat. Later, Lalor was elected Speaker of the Legislative Assembly of Victoria. For these reasons, the Eureka Stockade is regarded by many as the birthplace of Australian Democracy.

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