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Why else would they talk about the bush so frequently.
In the British colonial days Australia was used as a place to dump convicts. To dissuade the English population from committing crimes they told stories of Australia being a place made of fire and extremely hostile wildlife to a point where people even thought Australia didn't exist at all, it was just a myth you tell people; "Don't go stealin', or you'll be sent to the down under." And so on.
I guess the name just stuck.
Except it's not true. Australia was called the "land down under" simply because it was below the equator.