Having lived in Australia and taught at several Universities there ......
City Australia is very cosmopolitan. There is the same amount of racism, sexism and homophobia as in any other city anywhere else. Country Australia is a another matter. There are some right-wing red-necks who have never been out of Australia, never met anyone with a brown skin or a different accent but think they know everything about 'terrorism' (yes, its that knee-jerk an association).
I love Melbourne. I love the people, the eclectic culture that embraces all things. I love the trams, the beaches, and the restaurants in Carlton. I also love the country areas in small doses. But I wouldn't want to live there.