Australia and Taiwan share partnership in the inter-governmental Global Cooperation and Training Framework (GCTF) activities.

'[5] Despite the Australian government not having an official diplomatic relationship with Taiwan, an official Bilateral Economic Consultation is held annually by high-ranking Ministry of Economy officials of both sides[6] and there is a substantial unofficial relationship has developed through cultural and trade links, however, other than conventional industry, Australian firms rely on a mature international financial market to capitalise from the strong scientific/growing technical research due to high tax rate in Australia, and Taiwan does not have this attribute,[7] but Taiwan's highly Americanized specialist workforce may assist Australia's firms to internationalise the vision, especially with the competency on analytical research.

[15] The embassy based in Chungking was the third such post when Australia gained its on external affairs and already had diplomatic missions to London and Washington.

[15] Australia's relations with the ROC between 1949 and 1971 operated in a political environment which has been coined the 'China question', a term used to encompass the 'contest between two rival authorities, each claiming to represent the one China.

There were 'official diplomatic relations' as Australia did not believe in the One-China policy at this time,[18] and some Australian officials visited Taiwan during this period.

[19] These included Sir Arthur Tange, Secretary for External Affairs in October 1957 and then-Senator John Gorton in November 1960.

[24] Australia followed the general political atmosphere of the time in recognising Beijing, culminating in the December 21 Joint Communiqué with the PRC.

[25] An unofficial organisation known as the "Australia-Free China Society", headed by New South Wales MP Douglas Darby, established an office in 1974 to provide services for Australians visiting Taiwan.

'[29] Arrangements were made on a variety of topics such as access by Taiwanese fishing vessels to Australia's Exclusive economic zone, which were established in 1979 and 1986.

[30] The 1989 Tiananmen Square protests and massacre led to increased tensions between the PRC and Australia, thus contributing to a closer relationship with Taiwan.

The incident reportedly shocked Australia and Prime Minister Bob Hawke publicly cried at the memorial service for the victims who were killed.

[32] The period to receive an Australian visa in Taiwan was reduced to 48 hours,[30] and a memorandum of understanding was agreed relating to 'the promotion of investment and technology transfer and to the protection of intellectual property'.

[34] These events caused tension with the PRC, as they perceived that the US was executing a 'new containment strategy in which Australia and Japan were anchors.

Following the crisis, the Howard government attempted to strengthen relations with the PRC, resulting in reaffirming its One-China policy stance.

'[36] This culminated in an agreement in 1997 to start a range of annual PRC-Australia talks focused on security within the Asia Pacific region.

In the late 1990s and early 2000s Taiwan's checkbook diplomacy and competing policy goals in the Pacific lead to clashes with Australia over Papua New Guinea, the Solomon Islands, and Vanuatu.

In August 2024, the Parliament of Australia formally condemned China's use of United Nations General Assembly Resolution 2758.

[41] Australians tend to be very pro-Taiwan due to the widespread belief that China poses a threat to national security.