[Roderick Heath's expansive survey of the history of Australian cinema begins in that country's own silent era, and works forward into the 1960s. Parts II and III will bring us into the modern era. Some of the silent films mentioned here are actually available to watch online; links provided. So come meet the unsung heroes and pioneers of one of the world's most prolific and important film industries. Enjoy. - ed.] 
By Roderick Heath
Part One: 1896-1968
1. Pioneer Spirit
Filmmaking technology first came to Australia in the hands of Maurice Sestier, one of the Lumiere Brothers' [Wikipedia] many globetrotting cameramen, who arrived in Sydney in 1896, not a month after the first exhibition of films by Carl Hertz in Melbourne. Sestier shot several short travelogues of such edifying spectacles as Sydney Harbor and the crowds filing onto ferries and trams, and opened the Salon Lumiere on Pitt Street specifically to screen them, making him both Australia's first filmmaker and professional exhibitor. Sestier's film was too slow to capture the racing horses at the Melbourne Cup later in the year, so he settled for shooting the crowds instead. Sestier decided there was no future for cinema in Australia and auctioned off his camera two years after arriving, leaving for France with all his films. Nonetheless his work had made an impact, inspiring a small number of followers who made documentary shorts and news reels which proceeded to tantalize crowds.
Of course, random shots of commuters and bushland were never going to fascinate paying patrons for very long. The idea of creating a fiction feature film may have been in many minds, but the man regarded as the first to accomplish it was an unlikely figure: Major Joseph Perry of the Salvation Army's Magic Lantern and Photographic Department. Perry, an Englishman residing in Melbourne, had shot a few short documentaries, and his first stab at a new kind of cinema was part of an early multimedia experience, with portions of his film shown in alternation with slides, sermons, and hymn singing, as part of a religious lecture. This movie, entitled Soldiers of the Cross, was essentially a series of illustrative sequences portraying the grisly fates of early Christian martyrs.
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