Multiculturalism as a policy was introduced in Australia in 1973. The idea was borrowed from Canada, whichey developed a policy of multiculturalism to ensure a recognition of the right to cultural integrity for both French and Anglo Canadians.

In Australia multiculturalism replaced a previous racist immigration policy which expected migrants to lose their cultural identity on arrival and "assimilate" into the Anglo-Irish mainstream. It acknowledges that we are a society of many cultures (hence multiculturalism).

This policy was supported by the establishment of free government translation services, migrant resource centres and settlement programs and the formation of the Special Broadcasting Service (SBS), a television station dedicated to reflecting the diversity of our society.

This policy is an essential response to the fact that around 44% of Australians have a parent born overseas, and that there is a strong pattern of intermarriage between Australians of different backgrounds.