Australia's Aboriginal people developed the animist spirituality of the Dreaming and some of the earliest evidence on earth for religious practices among humans has been found in the archaeological record of their ancestors. Torres Strait Islander religion bore similarities to broader Melanesian spirituality. The general isolation of indigenous Australian religion ended with the arrival of the first British settlers in 1788, whereafter subsequent immigrants and their descendants have been predominantly Christian.

While the Church of England originally held a position of privilege in early colonial Australia, a legal framework guaranteeing religious equality evolved within a few decades. Large numbers of Irish Catholics were transported to Australia through the British criminal justice system. British Nonconformist Methodist, Presbyterians, Congregationalists and Baptists set up their own churches in the 19th century, as did Lutherans from Germany.

Smaller groups also arrived and established their churches. Jews started arriving in the early 19th century. The Australian gold rushes brought in workers from China and the Pacific islands, as well as specialised workers from British India, such as the mainly Muslim "Afghan Cameleers".

While Australia has a strong tradition of secular government, religious organisations have played a significant role in public life. The Protestant and Catholic churches played an integral role in the development of education, health and welfare services.

Today, around a quarter of Christians attend church weekly; around a quarter of all school students attend church-affiliated schools. The Christian festivals of Easter and Christmas are public holidays.