This paper presents an overview of the current state of historical linguistics in Australian languages. Australian languages have been important in theoretical debates about the nature of language change and the possibilities for reconstruction and classification in areas of intensive diffusion. Here are summarized the most important outstanding questions for Australian linguistic prehistory; I also present a case study of the Karnic subgroup of Pama–Nyungan, which illustrates the problems for classification in Australian languages and potential approaches using phylogenetic methods.
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