Australia is flat because it's just a few feet above sea level and Australia's highest point is quite low too. There has been very little geological movement for millions of years. Mountains have now worn down to hills. It is flat because the late tectonics movements didn't collide Australia against another land mass to build mountains recently.
Australia is in the middle of a tectonic plate, rather than the edge, whole collision causes earthquakes. We don't lie anywhere near the fault zones. This is the same with volcanoes. Active volcanoes generally occur dole to the major tectonic plate boundaries, which there are none of in Australia.
That's why we are so flat and stable.
Indo-Australian plate : major tectonic plate that includes the continent of Australia and surrounding ocean, and extends northwest to include the Indian sub continent and adjacent waters. Studies suggest that the Indo-Australian plate may be in the process of breaking into two separate plates due primarily to stresses induced by the collision of the plate with Eurasia along the Himalayas.
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