The aim of this paper is to discuss the situation of Japanese education in Australia from the perspective of the following three aspects: learners, teachers and learning environment. Following the Japanese education boom across the world in the 1990s, there has been a dramatic increase of Japanese learners in Australia for the past decade: 62,203 in 1990, 192,241 in 1993 and 245,863 in 1998. The numbers in 1998 in particular indicates the fact that the country had the second largest Japanese learners in the world. In response to the dramatic increase of the learners, there has also been a great deal of effort and commitment to provide high quality education, which includes the development of curricula, materials and textbooks, and the education of Japanese teachers. The main points are summarized as follows. One of the most distinctive characteristics of Japanese education in Australia is that overall, Japanese language education is extremely popular and productive in primary and secondary education. This is based on the fact that socially, the country is a multi-cultural and multi-language society and economically, building up and maintaining good relationships with neighbouring Asian countries is seen to be crucial for the future of Australia. The dramatic increase of Japanese learners has also caused some problems: for example, a shortage of quality Japanese teachers, and insufficiency in response to the diversity of learner`s needs. In particular, the early withdrawal of government support for the NASALS Program in recent years has made a negative impact on Japanese education. To speculate future developments, Japanese education in Australia is well established and despite some of the negative developments in recent years, it is expected that the quality of Japanese education will continue to be further improved, whilst it is not anticipated that the number of Japanese learners will again dramatically increase in the near future.