Foreigners sometimes confuse Austrians and Germans - they say they are one people and speak the same German language. However, the Austrians themselves are very offended by such confusion. Because they don’t consider themselves Germans at all - at least not recently. 
So, let's figure out what the sacred difference between Germans and Austrians is, why they are not one nation. 
In fact, the Austrians were formed from those Germans who, at the beginning of the Middle Ages, found themselves on the eastern border of the possessions of the Holy Roman Empire. And unlike other Germans, they got the opportunity to expand to the east, fighting the Slavs, Turks, and Hungarians.
All this resulted in the creation by the Austrians of that same Osterreich - literally the Eastern Reich (state, empire) under the banner of the Habsburg dynasty. And, consequently, a significant separation of the Austrians from other Germans. Below are the main differences.
Religion 
Unlike the majority of Protestant Germans (except for the Bavarians and a small number), the Austrians are Catholics, and very convinced ones at that. For the Habsburg powers were not affected by the Reformation.
Language 
Austrians use German, but in Austria even literary Deutsch has some of its own characteristics. And not only in terms of pronunciation, but also vocabulary - for example, Fußgeher (“pedestrian”) among the Austrians, versus Fußgänger among the Germans in Germany. 
In everyday life in the countryside, the Austrians also have their own Austro-Bavarian dialects, which will be completely incomprehensible to all Germans (except for the neighbors of the Bavarians), especially from the north of Germany.
Story 
Germany, as we have already said, has a different history than Austria. The Austrians, back in the Middle Ages, created their own strong empire, while many other German states were small cities, albeit commercially developed ones.
When Germany united at the end of the 19th century, the Prussians who united it simply did not allow the Austrians into the new union - they say, you are different: Catholics, mixed with Slavs, and so on.
The Austrians, having lost their empire after the failure of the First World War, still considered themselves Germans. And it was no coincidence that they supported the idea of Anschluss - unification with Nazi Germany. Moreover, the Third Reich was then ruled by their fellow countryman Hitler. What came of it - remember for yourself, dear readers.
After the Second World War, the Germans and Austrians finally diverged. The Austrians recognized themselves as a separate people, who were also prohibited by law from uniting with neighboring Germany.
Origin
Austrians differ significantly from other Germans, even Bavarians, in blood. Because in essence, this is a centuries-old German-speaking mixture of all the former peoples of the Austrian Empire. Slavs (Czechs, Slovenes), Hungarians, Italians, Jews, Romanians... Everyone who served the Habsburgs with faith and truth for centuries.
It is no coincidence that Austrians are often much darker in eyes and hair than most Germans. And among the inhabitants of Austria there are so many of the same Slavic surnames.
Culture and mentality 
Austria is a special subtle culture. Local guys - Mozart, Schwarzenegger. Well, Hitler, whom the Austrians are now actively trying to push off to the Germans - they say, he served in the army in Germany, and started his political career there.
Austrians are considered in the German world to be deeply different from Germans in mentality - more sophisticated, cultured, polite. Well, more stingy too.
In general, Austrians are Austrians. If until the middle of the 20th century they could still be called “independent Germans” with complete confidence, now they are a special people, even if they speak German.
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