By the 1870s, Australia's economy was shifting from the transient booms of resource extraction toward a more structured and sustained model of development. The wealth generated by previous gold and mineral rushes had not only attracted settlers and investors but had also revealed the pressing need for modern infrastructure. With increasing British oversight, the decade saw large-scale infrastructural projects and the first steps toward industrialisation, albeit still centred around resource extraction. This industrial development was not isolated, as at the same time the British East India Company had been apparently dissolved (in reality reallocating many of their assets to Australia) and India was annexed as the British Raj, of which Queen Victoria was now legal sovereign. The economic model of extractive industrialisation introduced by the EIC and perfected by the British Raj was implemented and adapted to the unique circumstances of Australia.
- Recognising the necessity of a reliable transport network, colonial administrations and private enterprises spearheaded a massive wave of infrastructure projects. Railways became the backbone of Australia's internal trade, connecting key production centres to coastal ports. British investments funded the construction of major railway lines, while smaller networks linked rural settlements to emerging industrial hubs. Roads and bridges were also expanded, facilitating the movement of goods, people, and colonial militia forces. Ports underwent significant upgrades to accommodate increasing exports of minerals, wool, and agricultural products. The telegraph network, though still limited, began connecting major towns, allowing for more efficient communication between colonies and with Britain. Australia's colonial infrastructure was later used as the foundation of National Rail & Road System.
- While Australia's economy remained primarily extractive, the 1870s marked a turning point in how resources were exploited, as Australia underwent its own industrial revolution. Mining operations became more mechanised as deep-shaft mining techniques replaced surface prospecting, aided by bleeding-edge machinery and the invention of dynamite. Coal mining emerged as a key industry, supplying fuel for steam-powered machinery, railways, and homes. Steel smelteries also appeared, supporting the development of Australia's nascent manufacturing sector.
- With infrastructure projects drawing in workers, many colonial towns rapidly became true cities. The population of major settlements grew exponentially as both local and migrant workers flocked to urban centres in search of employment. Labour conditions, however, were harsh, with long hours, low wages, and dangerous environments in both construction and mining industries. The influx of foreign labour further fuelled tensions between working-class settlers and colonial elites. Around this period, the Australians and their identity became truly multiculturalised.
The success of large-scale infrastructure projects strengthened the authority of colonial governments and cemented their economic reliance on Britain. While Australia was becoming more self-sufficient in terms of trade and resource management, it remained deeply tied to British financial institutions and markets. Economic disparities widened as wealthy investors and industrialists reaped the benefits of expansion while labourers struggled under exploitative conditions. Calls for political representation and economic fairness grew louder, but they went unheard. This was one of the major sources of support for Ned's Rebellion, ultimately unsuccessful, but laying the groundwork for Oceanykan independence.