The increase of competitiveness in the higher education global market demands many universities to find innovative approaches in providing education services. Online learning technology offers higher education providers a potential solution to compete. As in most parts of the world, the growing trend towards online learning has also taken shape in Australia. The increasing number of international students brings a cultural diversity to the online learning environment while existing literature tends to suggest that on-line learning environments tend to be more suitable for students from individualism and low power distance cultures. A case study of two fully online subjects indicated that students with collectivism and high power distance cultural background felt uncomfortable with the online learning environment. Findings from this study would enable various institutions and their teaching staff to help students with diverse of cultural backgrounds feel more comfortable and positive in the online learning environment.