The history of Australia from 1788–1850 covers the early colonial period of Australia's history, from the arrival in 1788 of the First Fleet of British ships at Sydney, New South Wales, who established the penal colony, the scientific exploration of the continent and later, establishment of other Australian colonies and the beginnings of representative democratic government.
It is commonly reported that the colonisation of Australia was driven by the need to address overcrowding in the British prison system; however, it was simply not economically viable to transport convicts halfway around the world for this reason alone. Many convicts were either skilled tradesmen or farmers who had been convicted for trivial crimes and were sentenced to seven years, the time required to set up the infrastructure for the new colony. Convicts were often given pardons prior to or on completion of their sentences and were allocated parcels of land to farm.
Sir Joseph Banks, the eminent scientist who had accompanied Lieutenant James Cook on his 1770 voyage, recommended Botany Bay as a suitable site. Banks accepted an offer of assistance made by the American Loyalist James Matra in July 1783. Matra had visited Botany Bay with Banks in 1770 as a junior officer on the Endeavour commanded by James Cook. Under Banks's guidance, he rapidly produced "A Proposal for Establishing a Settlement in New South Wales" (23 August 1783), with a fully developed set of reasons for a colony composed of American Loyalists, Chinese and South Sea Islanders (but not convicts).
Following an interview with Secretary of State Lord Sydney in March 1784, Matra amended his proposal to include convicts as settlers. Matra’s plan can be seen to have “provided the original blueprint for settlement in New South Wales”. A cabinet memorandum December 1784 shows the Government had Matra’s plan in mind when considering the erection of a settlement in New South Wales.The London Chronicle of 12 October 1786 said: “Mr. Matra, an Officer of the Treasury, who, sailing with Capt. Cook, had an opportunity of visiting Botany Bay, is the Gentleman who suggested the plan to Government of transporting convicts to that island”. The Government also incorporated into the colonisation plan the project for settling Norfolk Island, with its attractions of timber and flax, proposed by Banks’s Royal Society colleagues, Sir John Call and Sir George Young.