This particular plant is a member of the Lavandula family. The species grown in Tasmania, angustfolia, is one of the most common.It is grown in large quantities at Nabowla in the Bridestowe Estate near Lilydale and Scottsdale.

The oil is separated by steam and its main components are linalool and linalyl acetate, both of which can be made synthetically. This leads to significant adulteration in some countries. Bulgaria is the largest producer of Lavender Oil.
There is significant differences between the "headspace" chemicals of lavender - the smelt chemicals and the oil itself. The headspace is dominated by "terpenes" and "sesquiterpenes" while the oil is dominated by alcohols and esters.
The oil is heavily used in aromatherapy.
Main chemicals in Lavender Oil
linalyl acetate 3,7-dimethyl-1,6-octadien-3-yl acetate Bergamol C12H20O2

linalool 3,7-dimethylocta-1,6-dien-3-ol C10H18O

1,8 cineol 1,3,3-trimethyl-2-oxabicyclo[2.2.2]octane Eucalyptol C10H18O

caryophyllene 4,11,11-trimethyl-8-methylene-caryophyllene C15H24

terpinen-4-ol 1-methyl-4-isopropyl-1-cyclohexen-4-ol C10H18O
lavandulyl acetate C12H20O2
