During the Australian gold rushes, starting in 1851, significant numbers of workers moved from elsewhere in Australia and overseas to where gold had been discovered. Gold had been found several times before, but the colonial government of New South Wales (Victoria did not become a separate colony until 1 July 1851) had suppressed the news out of the fear that it would reduce the workforce and so destabilise the economy.

After the California Gold Rush began in 1848, many people went there from Australia, so the New South Wales government sought approval from the British Colonial Office for the exploitation of mineral resources, and offered rewards for finding gold.

The first gold rush in Australia began in May 1851 after prospector Edward Hargraves claimed to have discovered payable gold near Orange, at a site he called Ophir. Hargraves had been to the Californian goldfields and had learned new gold prospecting techniques such as panning and cradling. Hargraves was offered rewards by the Colony of New South Wales and the Colony of Victoria. Before the end of the year, the gold rush had spread to many other parts of the state where gold had been found, not just to the west but also to the south and north of Sydney.

The Australian gold rushes changed the convict colonies into more progressive cities with the influx of free immigrants. These hopefuls, termed diggers, brought new skills and professions, contributing to a burgeoning economy. The mateship that evolved between these diggers and their collective resistance to authority led to the emergence of a unique national identity. Although not all diggers found riches on the goldfields, many decided to stay and integrate into these communities.

In July 1851, Victoria’s first gold rush began on the Clunes goldfield. In August, the gold rush had spread to include the goldfield at Buninyong (today a suburb of Ballarat) 45 km (28 mi) away and, by early September 1851, to the nearby goldfield at Ballarat (then also known as Yuille’s Diggings),^] followed in early September to the goldfield at Castlemaine (then known as Forest Creek and the Mount Alexander Goldfield) and the goldfield at Bendigo (then known as Bendigo Creek) in November 1851. Gold, just as in New South Wales, was also found in many other parts of the state. The Victorian Gold Discovery Committee wrote in 1854:

The discovery of the Victorian Goldfields has converted a remote dependency into a country of world wide fame; it has attracted a population, extraordinary in number, with unprecedented rapidity; it has enhanced the value of property to an enormous extent; it has made this the richest country in the world; and, in less than three years, it has done for this colony the work of an age, and made its impulses felt in the most distant regions of the earth.

The gold rushes caused a huge influx of people from overseas. Australia’s total population more than tripled from 430,000 in 1851 to 1.7 million in 1871. Australia first became a multicultural society during the gold rush period. Between 1852 and 1860, 290,000 people migrated to Victoria from the British Isles, 15,000 came from other European countries, and 18,000 emigrated from the United States. Non-European immigrants, however, were unwelcome, especially the Chinese.

The Chinese were particularly industrious, with techniques that differed widely from the Europeans. This and their physical appearance and fear of the unknown led to them to being persecuted in a racist way that would be regarded as untenable today.

In 1855, 11,493 Chinese arrived in Melbourne. Chinese travelling outside of New South Wales had to obtain special re-entry certificates. In 1855, Victoria enacted the Chinese Immigration Act 1855, severely limiting the number of Chinese passengers permitted on an arriving vessel. To evade the new law, many Chinese were landed in the south-east of South Australia and travelled more than 400 km across country to the Victorian goldfields, along tracks which are still evident today.

In 1885, following a call by the Western Australian government for a reward for the first find of payable gold, a discovery was made at Halls Creek, sparking a gold rush in that state.