As I know one of the way for useing ON is when we are in a big place, and we are on the floor like:
I'm on the train.
And we use IN when we are in a small place, surrounded by walls or anything like that. Like:
I'm in Taxi.
And sometimes we use both of them. Like:
I am in/on boat.
But we always have some exceptions in English. Let's look at this one:
I am
in
Australia.
Personally I think there is a relationship between what we called "Metonymy" and these sentences.
I live in Australia (means I live in a room, in a part of my home, my home is in a part of a city, my city is a part of this country).
I left my keys behind in house (means I left that behind in a part of my house).
We make them part to part.
Because of this reason we use IN
Australia.
Is this personal idea correct or not?