The cultural diversity of Australia and the status of multicultural education in Australian schools are examined. The first part of the paper discusses Australia as one of the most culturally diverse nations in the world. The author points out that Australia's delay in establishing a concept of multicultural education results from the fact that Australians have historically resented newcomers; migrants and refugees have been expected to learn English, to accept Australian values and standards, and to assimilate into the Australian way of life. The second part of the paper details initiatives in multicultural education since it received official recognition in the late 1970s. The country's multicultural educational objectives, which have been widely accepted by teachers but disappointingly implemented, are discussed. An Australian primary school cultural awareness program is described as an illustration of one successful innovation. The paper concludes by examining four areas in multicultural education that need reassessment. (RM)