Australian beer is mostly now lager. Although Australia was settled predominantly by the British, it is too hot for ale brewing, and before refrigeration beer was difficult to brew at all (and obviously impossible to serve cold).

The oldest brewery still in operation is the Cascade Brewery, established in Tasmania in 1824

The majority of the large Australian breweries are now owned by the conglomerates Foster's Group and Lion Nathan. Notable exceptions are Boag's, which is owned by San Miguel, and Coopers, which is the only large brewery that is still privately owned.

Despite its heavy international presence, the so-called original Australian beer, Foster's Lager, has relatively low appeal throughout Australia. In general, the popularity of various brands of beer differs by state:

• New South Wales: Tooheys and Victoria Bitter
• Queensland: XXXX
• South Australia: Lion Nathan's West End brand and Coopers
• Tasmania: Boags in the north, Cascade in the south
• Victoria: Carlton Draught and Victoria Bitter
• Western Australia: Swan and Emu

With the exception of Coopers, these are all mild-tasting commercial lagers. Though Australians usually prefer the beer of their home state (with only Victoria Bitter having a strong presence outside of its native state), other popular brews are Hahn and Crown lager. Particularly in the trendier areas of the major cities, specialty brews produced by major brewers and by microbreweries, including a wide variety of ales, are increasing in popularity, as are some foreign beers.

Guiness has a strong following among the folk music communities in many states, and groups such as the Brisbane Guinness Appreciation Society in the late 1990s promoted it as an alternative to the regular brews. Couple this with the growth of Irish theme pubs and a growing awareness of the Irish roots of many Australians, Guiness has become increasingly available On Tap in recent years