The Australian plate is the fastest moving continental land mass on Earth and is colliding into the Pacific plate to Australia's north and east, and the Eurasian Plate to the northwest. This generates mainly compressive stress in the interior of the Australian continent, which is slowly building up across the plate as it moves northeast about 7 cm per year. Australia's earthquakes are caused by the sudden release of this stress when rocks deep underground break and move along a fault line. While some parts of the country are more likely to experience earthquakes than others, large earthquakes can occur anywhere across the continent, and without warning.

On average 100 earthquakes of magnitude 3 or more are recorded in Australia each year. Earthquakes above magnitude 5.0, such as the destructive 1989 Newcastle earthquake, occur on average every one-to-two years. About every ten years Australia experiences a potentially damaging earthquake of magnitude 6.0 or more such as the magnitude 6.5 Meckering earthquake in October 1968.