A long time ago when people in England were bad or murdered someone or something like that they would be banished from England and sent off to Australia. This is how most Australians started out. Pom stands for Prisoner of her Majesty. It is what the people in Autralia would call English people.
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Two possibilities:
1 from POMP; high church dignitaries have them on their birettas
2 from the same root as PUMPKIN, as they have the sape of a gourd.
In either case, the word originally is POMPON and it's French.