Australians spell the color as grey, following British English spelling conventions rather than American English. In Australian English, the standard spelling for the color is grey with an e, while gray with an a is considered the American variant. Australian dictionaries, newspapers, and educational materials list grey as the preferred spelling. You would write grey sky, grey hair, grey area, and greyhound in Australian English. However, because of exposure to American media and products like Crayola crayons that use gray, Australians are familiar with both spellings and may encounter gray in imported products or online content. In formal Australian writing, grey is expected for consistency with other British spellings such as colour, flavour, and centre. So if you are writing for an Australian audience or following Australian style guides, use grey, and reserve gray for when quoting American product names or following American style intentionally.
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