Australia has been very successful in bringing large numbers of people from a broad range of countries, races and religious beliefs to its shores and in making them feel 'at home'. Recent events have brought into question whether the philosophy of multiculturalism is as firmly embedded in the national identity as many had thought. This work attempts to assess what this means for the successful incorporation of multiculturalism into Australia's national identity and what consequences this might have for Australia as it faces the new century in a globalised world.