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Why is Australia called Oz?
Because most roads are paved with yellow brick, and Canberra (the capital) is adorned with rich green emeralds. Plus, Australia was once used as a maximum security prison.
Edited: Wed, 29 May 2013 09:20:12
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The word Australia when referred to informally with its first three letters becomes Aus. When Aus or Aussie, the short form for an Australian, is pronounced for fun with a hissing sound at the end, it sounds as though the word being pronounced has the spelling Oz.