Some areas, including NSW and the Murray-Darling Basin, recorded their warmest year since records have been kept.
The Bureau of Meteorology, in its annual Australian Climate Statement released today, said the annual mean maximum temperature for 2007 of 28.6C was 0.73C above normal.
The average annual mean temperature was 21.8C, with the annual mean minimum temperature 0.61C above normal.
Mean temperatures were above average across Australia during every month except June and December in 2007.
Despite widespread drought in the far south-west and south-east of the continent, annual mean rainfall was slightly more than average at 497mm (25mm above normal).
The bureau said there was average to above average annual rainfall across northern and central Australia, average to below average annual rainfall in the southwest and mixed results in the remainder.