The status of the Italian language in Australia, particularly in the educational system at all levels, in Australian society in general, and in trade, technology, and tourism is discussed in this report. It begins with a description of the teaching of Italian in elementary, secondary, higher, adult/continuing, and teacher education. Trends are traced from the 1950s through the 1980s, looking at political and religious factors in its evolution, formation of national policy, curriculum and assessment approaches, professional issues in teacher education, and research on learning motivations and attitudes toward Italian. Development of public policies and initiatives is chronicled from the 1970s, with specific reports, events, and programs highlighted. Teaching of Italian in various areas of Australia is also surveyed. A discussion of the role of Italian in Australian society looks at the impact of migration, language shift and maintenance, demographics of the Italian-speaking community, and cultural and language resources within that community. A final chapter gives an overview of Italian in the world context and discusses its importance to Australian trade and tourism. Recommendations for Italian language teaching are presented. Appended materials include lists of individuals and organizations; Italian courses in Australian universities; Italian in adult and continuing education courses; and a language attitude questionnaire. (Contains 428 references.) (MSE)