The capital of Australia, also known as the 'Down Under Capital, ' is CANBERRA. It is located in the Australian Capital Territory and is the largest inland city in Australia. CANBERRA was chosen as the nation's capital in 1908 as a compromise between Sydney and Melbourne, which were the two largest cities in Australia at the time. It is home to many national monuments and institutions, such as the Australian War Memorial, Parliament House, and the National Gallery of Australia.