This article traces some of the key historical events that have combined with Australia's geography, climate and patterns of immigration in shaping characteristics of Australian families--characteristics that are remarkable for their diversity on many fronts. These factors, along with changing patterns of family formation, stability and structure, evolving parenting roles, and the ever-increasing spatial concentration of families, have all contributed to diverse strengths, vulnerabilities and lifestyles of families. Policies directed towards helping families identify and draw on their own strengths and those of their community have gained momentum since the late 1990s. The article outlines some of these policies, along with a project on family strengths that has helped shape interventions. doi: 10.1300/J002v41n03_01 KEYWORDS. Family challenges, family formation, family strengths, government policies, historical events