We're not independent. We're still part of the British "Empire". There is a growing movement to ditch the monarchy though.

A brief history of Australia Day.
First celebrations
On January 26, 1788 Captain Arthur Phillip took formal possession of the colony of New South Wales and became its first Governor.

The fledging colony soon began to celebrate the anniversary of this date. Manning Clarke notes that in 1808 the "anniversary of the foundation of the colony" was observed in the traditional manner with "drinking and merriment".

The first official celebrations were held in 1818 to mark the 30th anniversary of white settlement. Governor Macquarie officiated at a thirty-gun salute during the day and a dinner ball at Government House that evening.

Foundation Day
During the early nineteenth century the anniversary was called 'Foundation Day' and was usually marked by sporting events. Horseracing was popular in the 1820s, whilst regattas became popular in the 1830s.

One of these, the Anniversary Regatta which was first held in 1836, is still held on Sydney Harbour on January 26 each year. Now called the Australia Day Regatta it is the oldest continuous regatta in the world.

A growing sense of patriotism was also being expressed in other ways. In 1824 Charles Tompson, reputed to be our first Australia-born poet, composed Wild Notes from the Lyre of a Native Minstrel.

Fifty years after Phillip landed Australia's first public holiday was announced to celebrate Foundation Day 1838. The inaugural holiday became an annual event and has continued to be held on or around January 26.