Here are the most festive towns in Australia

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From twinkling lights and Christmas markets to carols by candlelight, these charming destinations deliver all the festive cheer you need to make the season merry and bright.

The holiday season in Australia is a different kind of magic than in the northern hemisphere. From sun-soaked beachside celebrations to country towns decked out in twinkling lights, the festive spirit is alive and well across the country.

Whether you’re after a winter wonderland vibe (minus the snow) or a beachy Christmas experience, these towns know how to deliver on festive cheer.

1. Hahndorf, SA

Step into a fairy-tale Christmas village in Hahndorf, Australia’s oldest German settlement. Come December, this charming town in the Adelaide Hills transforms into a Christmas wonderland straight out of Europe. The streets are lined with heritage buildings adorned in festive lights, and local shops offer up a treasure trove of artisan goods perfect for gift shopping.

an event in Hahndorf festooned with fairy lights
Watch live performances under twinkling fairy lights.

Don’t miss the Christkindlmarkt, a traditional German-style Christmas market where you can indulge in mulled wine, gingerbread, and bratwurst while browsing handcrafted decorations and gifts. The twinkling fairy lights, carols and festive fare will make you feel like you’ve stepped into a snow globe, even though the sun is shining.

people browsing through the stalls at the Christkindlmarkt in Hahndorf
Shop handmade decorations and gifts at the German-style Christmas market.

2. Ballarat, Vic

This Gold Rush town knows how to celebrate Christmas with old-world charm and sparkle. Sovereign Hill’s Christmas in July may get all the attention, but come December, Ballarat comes alive with festive spirit once again.

Christmas in Ballarat
Christmas in Ballarat is a magical time of year. (Image: Meda Designs Au)

The entire town is lit up with Christmas lights and festive markets pop up in historic streets filled with local crafts, food stalls and live entertainment.

reindeers festooned with fairy lights in Ballarat
The historic streets turn into a Christmas wonderland. (Image: Meda Designs Au)

One of the highlights is the Ballarat Christmas Tree; a massive display that stands proudly in the town square alongside carol services that bring the community together in a joyful celebration.

people sitting inside a huge Christmas ball in Ballarat
Snap a selfie inside a huge Christmas bauble. (Image: Meda Designs Au)

3. Hunter Valley, NSW

The Hunter Valley is known for its world-class wineries, but come Christmas, it transforms into a festive wonderland. The Hunter Valley Gardens Christmas Lights Spectacular is the largest light display in the southern hemisphere, with over four million lights illuminating the beautiful gardens.

a family walking under a garden arch with vibrant lights in Hunter Valley
The annual Hunter Valley Gardens Christmas Lights Spectacular.

Stroll through the themed light displays, including Fairyland, Winter Wonderland and the new Candyland, while enjoying live entertainment, food stalls and family-friendly activities. New to The Hunter Valley Gardens Christmas Lights Spectacular this year are 10+ metre Christmas trees, the five-metre Teddy Bear seat and Mr and Mrs Claus.

It’s the perfect spot for a festive evening under the stars and if you’re a wine lover, it’s a win-win Christmas destination.

an epic thrill ride at the Hunter Valley Gardens
Carnival rides take the fun up another level.

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4. Mandurah, WA

Mandurah transforms into a sparkling wonderland during the holiday season with its famous Mandurah Christmas Lights Trail.

the light display at Mandurah Christmas Lights Trail
Marvel at the colourful Mandurah Christmas Lights Trail.

The entire foreshore and waterways are adorned with dazzling light displays, creating a magical spectacle that attracts locals and visitors alike.

Christmas tree displays light up on the waterway, Mandurah
Dazzling Christmas trees are perched on the foreshore. (Image: West Beach Studio)

You can get up close to the illuminated houses or enjoy a stroll along the waterfront to soak in the festive atmosphere.

a vehicle decorated for Christmas in Mandurah
You’ll find Christmas displays scattered across town.

Mandurah also hosts family-friendly events, including carols by candlelight and a vibrant Christmas pageant that winds through the heart of the city, making it one of WA’s most festive destinations.

a huge Santa statue in Mandurah
A visit to Mandurah will have you feeling merry.

5. Launceston, Tas

When it comes to festive charm, Launceston delivers with country warmth and a sprinkling of holiday magic.

people wandering around Launceston
Launceston comes alive with festive fun during the holiday season.

The streets of Tasmania’s second city are illuminated with sparkling lights and the city hosts several Christmas events throughout December.

a crowd of people watching a live performance in Launceston
Catch live music performances in the great outdoors. (Image: Adam Gibson)

One of the standout features of the city’s Silverdome Christmas Market. It offers a great opportunity to pick up handmade gifts and seasonal treats and the City of Launceston Lions Club Christmas Parade is a beloved event where the streets come alive with festive floats, marching bands and cheerful crowds, adding to the town’s festive atmosphere.

a fireworks display in Launceston
Don’t miss the spectacular fireworks display.

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6. Stanthorpe, Qld

Known for its wineries and cool climate, Stanthorpe transforms into a festive wonderland during the holiday season. Located in the Granite Belt, this charming country town goes all out with twinkling Christmas lights, community carols and festive markets.

colourful flowers at the annual Apple and Grape Festival, Stanthorpe CBD
The Apple and Grape Festival highlights the region’s produce and pretty blooms. (Image: Supplied)

A must-visit is the Granite Belt Christmas Farm, where you can pick your own real Christmas tree, wander through the festive shop filled with decorations and gifts and even meet Santa’s farm animals.

a family strolling around the Granite Belt Christmas Farm
Select your Christmas Tree from the farm. (Image: Tourism and Events Queensland)

With local wineries hosting festive-themed events, Stanthorpe offers a cosy and magical countryside Christmas experience.

Christmas decor on display at the store, Granite Belt Christmas Farm
Find every kind of Christmas decoration you could imagine inside the onsite store.

7. Lobethal, SA

The Lobethal Lights are nothing short of legendary, with this quaint town in the Adelaide Hills putting on South Australia’s largest Christmas light display. For over 60 years, the Lobethal Lights Festival has been illuminating homes, businesses and streets, drawing visitors from far and wide.

Wander through the town’s Living Nativity scenes, enjoy local markets brimming with handcrafted goods and join the community in celebrating Christmas. The lights and celebrations continue for most of December, offering plenty of time to experience the magic of Lobethal at its festive best.

8. Chiltern, Vic

Nestled in Victorian High Country, Chiltern is known for its stunning natural beauty, but it’s also a town that knows how to do Christmas right.

Christmas crochet and yarn bombs in Chiltern, Vic
Poles and bollards are dressed in crocheted characters around town.

Sharing its festive spirit by covering the street bollards with crocheted decorations, Chiltern will fill your heart with holiday joy.

a Christmas decoration on the streets of Chiltern, Vic
Not even phone booths are overlooked.

Ready to deck the halls? These festive Aussie towns are guaranteed to get you feeling merry and bright this holiday season. Pack your Santa hat and get ready to celebrate!

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Emily Murphy
Emily Murphy is Australian Traveller's Email & Social Editor, and in her 4+ years at the company she has been instrumental in shaping its social media and email presence, and crafting compelling narratives that inspire others to explore Australia's vast landscapes. Her previous role was a journalist at Prime Creative Media and before that she was freelancing in publishing, content creation and digital marketing. When she's not creating scroll-stopping travel content, Em is a devoted 'bun mum' and enjoys spending her spare time by the sea, reading, binge-watching a good TV show and exploring Sydney's vibrant dining scene. Next on her Aussie travel wish list? South Australia and The Kimberley.
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How a $1 deal saved Bendigo’s historic tramways

The passionate community that saved Bendigo Tramways has kept the story of this city alive for generations.

It was an absolute steal: a fleet of 23 trams for just $1. But such a fortunate purchase didn’t happen easily. It was 1972 when the Bendigo Trust handed over a single buck for the city’s historic collection of battery, steam and electric trams, which had transported locals since 1890.

inside the historic Bendigo Tram
Bendigo Tramways is a historic transport line turned tourist service. (Image: Bendigo Heritage)

The city’s tram network had been declared defunct since 1970 due to post-war shortages in materials to upkeep the trams and declining passenger numbers as motor vehicles were increasing. However, determined locals would not hear of their beloved trams being sold off around the world.

The Bendigo Trust was enlisted to preserve this heritage, by converting the trams into a tourist service. The Victorian government approved a trial, however news spread that the Australian Electric Tramways Museum in Adelaide had acquired one of the streetcars for its collection.

a tram heading to Quarry Hill in 1957
A tram on its way to Quarry Hill in 1957. (Image: Bendigo Heritage)

An impassioned group rallied together to make this physically impossible. Breaking into the tram sheds, they welded iron pipes to the rails, removed carbon brushes from the motors, and formed a blockade at the depot. The community response was extraordinary, and a $1 deal was sealed.

A new chapter for the city’s fleet

the old Tramways Depot and Workshop
The old Tramways Depot and Workshop is one of the stops on the hop-on, hop-off service. (Image: Tourism Australia)

Today, Bendigo Tramways welcomes some 40,000 passengers annually, operating as a hop-on, hop-off touring service aboard the restored trams. Fifteen of the now 45-strong fleet are dubbed ‘Talking Trams’ because of the taped commentary that is played along the route. The trams loop between Central Deborah Gold Mine and the Bendigo Joss House Temple, which has been a place of Chinese worship since 1871, via other sites including the old Tramways Depot and Workshop.

a Gold Mine Bendigo Tram
The fleet comprises 45 trams that have been restored. (Image: Visit Victoria/Robert Blackburn)

Keeping things interesting, throughout the year visitors can step aboard different themed trams. Tram No. 302 becomes the Yarn Bomb Tram, decorated both inside and out with colourful crochet by an anonymous group of locals.

During the festive season, Tram No. 15 operates as a tinsel-festooned Santa Tram, and the big man himself hides out somewhere along the route for excited children to find. And on selected dates, the adults-only Groove Tram runs nighttime tours of the city, accompanied by local musicians playing live tunes and a pop-up bar.

the historic post office turned visitor centre in Bendigo
Visitors can hop on and off to see the city’s sites such as the historic post office turned visitor centre. (Image: Tourism Australia)

As well as preserving the city’s history, however, the continuation of the tram service has kept the skills of tram building and craftsmanship alive in a practical sense. Bendigo’s Heritage Rail Workshop is world-renowned for restoring heritage trams and repurposing vehicles in creative ways.

Locally, for example, Tram No. 918 was transformed into the Dja Dja Wurrung Tram with original Aboriginal artworks by emerging artist Natasha Carter, with special commentary and music that shares the stories and traditions of Bendigo’s first people. You can’t put a price on preserving history. Nonetheless, it was a dollar very well spent.