Although the project had been rumoured for many months beforehand, Baz Luhrmann first spoke out about his new movie on 22 February 2006. In an interview with Australian reporters in the north Queensland town of Bowen, he revealed that the beginning of the film starts in the mid-1930s and concludes with its major set-piece, the 1942-43 Japanese bombing of Darwin and the exodus south, known as the Adelaide River Stakes. Luhrmann said it will be an epic on the scale of Gone With The Wind, Out of Africa, or Giant. He had researched the film for 10 years and advised it would be a “mythological telling” drawn from books and historic materials. Luhrmann advised that Russell Crowe and Nicole Kidman would be starring, and the film would have an almost entirely Australian cast. He hoped that shooting would take place in Darwin, Bowen, Queensland, the Kimberley region in Western Australia, and Fox Studios in Sydney. The movie was being backed by 20th Century Fox.

Originally rehearsals were due to begin in March 2006 with the shoot beginning around July 2006. However, on 30 March 2006, Baz Luhrmann made a public statement, “To say that it is a complex and large-scale undertaking is an understatement and I cannot formally announce the project until all of the crucial elements are secure.” It was believed that 20th Century Fox approving the budget was to blame, and it soon became apparent that filming would be pushed back until 2007.

On 30 May 2006, there was a sudden media flurry surrounding the film, with speculation that Russell Crowe had been replaced by Heath Ledger. However, on 6 June 2006, the true identity of Crowe’s replacement was revealed, and it was announced that Hugh Jackman had now signed on to play the male lead. It was believed that Crowe’s departure was due to disagreements between actor and studio regarding money and timing issues. However, both Crowe and Luhrmann have repeatedly confirmed that they are still good friends, and still hope to work together some day.

On 31 October 2006, Baz Luhrmann spoke to ABC Radio National and revealed that his team were in pre-production and filming should begin by the end of March 2007. He talked about the plot, casting, and indicated that the still untitled project would soon be named.

On 23 November 2006, Baz Luhrmann finally announced that the title of the film would be Australia. He also revealed the first character name – Lady Sarah Ashley, to be played by Nicole Kidman – and indicated that he would make a further casting announcement in the near future.

In December 2006, it was announced that Baz Luhrmann had chosen the north Queensland town of Bowen to double as Darwin in the film. It was also reported that movie rehearsals with Nicole Kidman and Hugh Jackman were held at Camelot, a historic house on the outskirts of Sydney.
In January 2007, Hugh Jackman revealed the very first sneak peak of the movie at the G’Day USA Awards in New York, with large screens revealing black and white images of Jackman and Kidman. Further cast members were also announced – Jack Thompson, Bryan Brown and David Wenham. And in April 2007, it was announced that 11-year old Brandon Walters would be playing the pivotal role of a young Aboriginal boy in the movie.

Filming of Australia began on 30 April 2007 at Strickland House in Sydney. Not long afterwards the very first images from the set were revealed of Hugh Jackman and Nicole Kidman in character. The movie shoot moved to Bowen on 14 May 2007 and continued there until the end of 30 June 2007. The town was transformed into 1938-42 Darwin, with massive sets being constructed and many locals becoming involved in the filming process.

On 3 July 2007, filming commenced in Darwin with several scenes being shot at Stokes Hill Wharf. Later that month, filming was originally due to move to Kununurra, but the shooting schedule had to be rearranged due to unseasonal weather. Filming wrapped in Darwin on 11 July 2007, and the cast and crew headed to Fox Studios in Sydney. The movie shoot commenced on location Kununurra from early August 2007 and pricipal cast wound up their part on September 6th 2007..

During September 2007 the cast and crew came together once more on the soundstages of Fox Studios in Sydney, New South Wales. Far from completed they spent several months with blue screen and immaculate replicated sets before filming wrapped on 19th December 2007.

Throughout 2008 post production has been quiet. Late May 2008 the first teaser trailer was released followed shortly by a promotional and educational set of Podcasts called the Set to Screen series. Extra snippets have been shown at conferences and expos throughout the year and American test screens were undertaken in June 2008.

On July 7th 2008 Nicole Kidman gave birth to daughter Sunday Rose Kidman Urban, the child who was conceived during the filming of Australia. Jackman later revealed this eventually limited the capacity of Kidman to film her own horseriding scenes.

From August 11th 2008 the cast and crew met back at Sydney Fox Studios to do some finalizing touch up shots.

The film is scheduled for a November 13 2008 release.