This lesson, one of four stand-alone lessons that examine Australia as an aspect of world history, addresses the relationship between Australia and Great Britain, exploring Australia's peaceful move to self-rule, membership in the Commonwealth, and development of nationality. The lesson has two parts. In the first part, "Formation of a Nation," students evaluate the factors that led to Australian federation and compare the process and relationship Australia had to Great Britain with the experience of other British colonies such as Canada, India, and Ireland. In the second part, "Republic--Yes or No?" the students trace Australia's historic relationship with Great Britain and the United States. The lesson contains a teacher introduction, four handouts, suggested activities for each part, and follow-up activities. Contains 16 sources. (BT)