White Australian history has displayed rampant racism, sexism, and cultural chauvinism. Since 1947 Australia has undergone a demographic revolution in both size and ethnic composition. The four million migrants, 56 percent of whom are of non-British origin, and their 2 million children, account for nearly 60 percent of Australia's post-war population growth. Although the federal and state governments have been enacting equal opportunity and affirmative action legislation, and there have been improvements in community attitudes toward migrants, racism and cultural chauvinism persist in many forms and in many aspects of Australian society. Aboriginal Australians are the minority group most subject to prejudice and discrimination. The following aspects of the nature and construction of prejudice are discussed: (1) racialism; (2) cultural superiority; and (3) political and economic dimensions. Australian society must combat prejudice by generating a range of coherent policies to work through institutions such as the law, the polity, the economy, and education. Educational strategies aimed at the reduction of prejudice are discussed and presented on a table. Newspaper headlines supplement the text. A list of 17 references is included. (BJV)