Although Australia was originally inhabited by the Aborigines, today it can be mistaken for a British country owing to massive changes in cultural, social and economic structures as a British model. More than two centuries of colonization by British has led to cultural, social and economical changes in a way that there has been successive erosion of original Australian structures. From the time Captain Thomas Cook made voyages to Australia, what followed was a massive importation of not only British convicts and settlers but also British culture, economy and political practices that were integrated in Australian way of life with time. Thus it is the years of British settlement in Australian in combination with some of the policies like Assimilation Policies that has created the modern Australian country which follows British institutions and way of life. In this paper we are going to explore the historical colonization of Australia by British and how the British polices have changed Australia.