Advances in earthquake data acquisition and processing techniques have allowed for improved quantification of source parameters for local Australian earthquakes. Until recently, only hypocentral locations and local magnitudes ( M L) had been determined routinely, with little attention given to the inversion of additional source parameters. The present study uses these new source data (e.g. seismic moment, stress drop, source dimensions) to further extend our understanding of seismicity and the continental stress regime of the Australian landmass and its peripheral regions. Earthquake activity within Australia is typically low, and the proportion of small to large events (i.e. the b value) is also low. It is observed that average stress drops for southeastern Australian earthquakes appear to increase with seismic moment to relatively high levels, up to approximately 10 MPa for M L 5.0 earthquakes. This is thought to be indicative of high compressive crustal stress, coupled with strong rocks and fault asperities. Furthermore, the data indicates that shallow focus earthquakes (shallower than 6 km) appear to produce lower than average stress drops than deeper earthquakes (between 6 and 20 km) with similar moment. Recurrence estimates were obtained for a discrete seismogenic zone in southeastern Australia. Decreasing b values with increasing focal depth for this zone indicate that larger earthquakes (with high stress drops) tend to occur deeper in the crust. This may offer an explanation for the apparent increase of stress drop with hypocentral depth. Consequently, earthquake hazard estimates that assume a uniform Gutenburg–Richter distribution with depth (i.e. constant b value) may be too conservative and therefore slightly overestimate seismic hazard for surface sites in southeastern Australia.