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The Australian continent was variously known as Locac or Lucach, India meridional (South India), Java le Grande and Terra Australis by Mercator (and others) in the latter half of the 1500s.

The name Australia is derived from the Latin phrase terra australis incognita meaning 'unknown south land' in reference to the as yet unknown land mass believed to lie in the south throughout the Middle Ages.

Portuguese sailor Pedro Fernández de Quirós (in portuguese Fernandes de Queirós), searched for this new land in 1606 while serving in the spanish navy, and called it Austrialia del Espíritu Santo or 'Great South Land of the Holy Spirit'. The word "Austrialia", slightly different from the current "Australia", was a mixture formed by "Austria" (the country of origin of the Habsburg dinasty) and "Austral" ("Southern"). In those times the current nations of Spain and Portugal were under the rule of the same crown. The word Austrialia was intended to be an homage to the ruling monarchs. Different variations on the name were used in many languages. There was, however, a German document dating back to 1545 describing a southern land mass as Australia.

(note the link below for a reference to this document)

The first use of the word "Australia" in English was in 1625-the words "A note of Australia del Espiritu Santo, written by Master Hakluyt.

Matthew Flinders, who was the first known European explorer to circumnavigate the Australian continent in 1802, is credited with assigning the name 'Australia' to this continent although it did not immediately receive universal approval. In 1814 when explorer Matthew Flinders published his work 'A Voyage to Terra Australis', he used the term 'Australia' within the book. Around 1818, Governor Lachlan Macquarie, arguably the most influential man in Australia at the time, also requested that the name "Australia" be officially ascribed.

The name 'Australia' was formally adopted in 1824.

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