With some of the world's best solar and wind resources, Australia is a prime market for solar and wind energy. The growing renewable energy industry can take advantage of Australia's stable economy, good access to grid infrastructure and well organised financial and legal services. Although development has been slower than what was anticipated, but with the promises made by the new government, the renewable community hopes for a brighter future for solar and wind energy in Australia. The objective of this paper is to present an overview of the current status of solar and wind energy in Australia, then to take a closer look at solar and wind potential, current activities, and finally to discusses about Australian Government support and to predict the future outlook of solar and wind energy.