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The largest island in the world (unless you use a Mercator projection map, in which case it's Greenland, or count Antarctica as an island). Mostly a howling wilderness (see also: North and South Dakota) inhabited by a number of vicious creatures identifiable by their distinctive cry of “G'day!”. Also home to many dangerous mammals, reptiles, insects and other animals and plants which have evolved a range of defences (many poisonous) as a result of evolutionary pressure from Australians. Rather than asking whether a particular animal is dangerous, it's easier to ask if there's any Australian animal which is not dangerous. So far, no-one's found one. A common misconception is for people to say that some of the sheep are harmless, but that is a dangerous mistake. Many a shearer has met his fate at the hooves of a jealous sheep.
Beware of the Drop Bears, crocodiles, and anyone with a colour in their name. Beer Rating: 7/10. Varies greatly by region.
As far as AH is concerned, Australia is a bit like the Congo in that it's a case of “Hmm. Let's try for the most random colonial power possible.” The most common ones, apart from Britain as in OTL, are the Netherlands, France, and (earlier on) China. For makers of AH maps, this is even more a case of random borders. Many ATL nations are carved out of parts of Australia which can realistically support a population of 315 kangaroos and one lonely camel.
Australian-penned AH tends to be characterised by Australia getting into a war with a militarised expansionist Indonesia at some point in the second half of the 20th century. Even if the POD is in 1600.
Including some overseas territories:
If you are from Australia, feel free to add your name to the list.