Eurovision Song Contest

[Dave]

Can anyone explain why Australia and Iceland are in it, neither of them are in Europe 

[Lee]

Iceland is part of Europe.
Australia were invited as the Aussies are huge Eurovision fans.

Officialy the reason is they are all members of the European Broadcasting Union, which includes non European countries like Australia, Israel, Azerbaijan and Lebanon and most North African countries.

[Dave]

From the tinternet as Peter Kay would say

Iceland is heavily integrated into the European Union via the Agreement on the European Economic Area and the Schengen Agreement, despite its status as a non-EU member state. Iceland applied for membership in 2009 but the application was controversial and the Minister of Foreign Affairs sent a letter in 2015 ending the application process.

[Lee]

The United nations (and Wikipedia) consider it part of Europe?  You cannot view this attachment.