Which island is known as Australia’s largest and most populous island state?

Tasmania is recognized as Australia’s largest and most populous island state. It is located south of the mainland of Australia and is separated by the Bass Strait. Tasmania has a significant land area that contributes to its status as a state, and it is also home to a population that forms a vibrant community with rich culture and history. The island's geographical features include mountains, forests, and a rugged coastline, which contribute to its unique environment and attractiveness for both residents and visitors.

While other states such as Victoria, New South Wales, and Queensland are populous and have their own distinct characteristics, they are not islands in the same sense. Victoria, New South Wales, and Queensland are located on the mainland of Australia, making them different in context from Tasmania. Therefore, Tasmania stands out not only as an island but also as a state with a robust population and diverse landscape, solidifying its place as Australia’s largest and most populous island state.