
The Australian Government is divided into states and territories. There are six states in Australia, each with its own constitution and divisions of legislature, executive, and judiciary. The six state parliaments can pass laws on matters not controlled by the Commonwealth. There are also ten territories outside the borders of the states, two of which have been granted limited self-government by the federal government. The Australian Government's lead economic advisor is the Treasury, which provides advice and implements policies to achieve strong economic outcomes for Australians.
| Characteristics | Values |
|---|---|
| Number of states | Six: New South Wales, Queensland, South Australia, Tasmania, Victoria, and Western Australia |
| State constitution | Each state has its own, dividing the government into legislature, executive, and judiciary |
| State laws | Each state parliament can pass laws on matters not controlled by the Commonwealth under Section 51 of the Australian Constitution |
| State head | Known as the Premier |
| Number of territories | Ten outside state borders |
| Self-governing territories | Two: Australian Capital Territory (ACT) and Northern Territory |
| Territories governed by Commonwealth law | Seven, through an Australian Government-appointed Administrator |
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What You'll Learn

State and territory government
Australia has six federated states: New South Wales (including Lord Howe Island), Queensland, South Australia, Tasmania (including Macquarie Island), Victoria, and Western Australia. There are also ten federal territories, three of which are internal territories: the Australian Capital Territory, the Jervis Bay Territory, and the Northern Territory on the Australian mainland. The remaining seven are external territories: the Ashmore and Cartier Islands, the Australian Antarctic Territory, Christmas Island, the Cocos (Keeling) Islands, the Coral Sea Islands, Heard Island and McDonald Islands, and Norfolk Island.
Each state and internal territory (except Jervis Bay Territory) has its own legislature, although the Federal Parliament can override territorial legislation. The federal High Court of Australia acts as the final court of appeal for all matters and can override any state judiciary. While all states and internal territories have their own judicial system (subject to appeal to the High Court), most external territories are subject to the judiciary and legislature of either a state or internal territory.
The six state parliaments are permitted to pass laws related to any matter that is not controlled by the Commonwealth under Section 51 of the Australian Constitution. The monarch's powers over state matters are exercised by a Governor in each state. The head of each state government is known as the Premier.
The two territory governments, the Australian Capital Territory (ACT) and the Northern Territory (NT), were created by legislation of the Federal Parliament—the NT in 1978 and the ACT in 1988. The ACT and the Northern Territory are unique in that their parliaments combine the responsibilities of both a local and state government. They have been granted a limited right of self-government by the federal government, and a range of governmental matters are now handled by a locally elected parliament.
The premiers and chief ministers of the Australian states and territories are the heads of the executive governments in the six states and two self-governing territories of Australia. They perform the same function at the state and territory level as the Prime Minister of Australia performs at the national level.
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Commonwealth law
The Australian government has a complex structure, with a range of laws and powers that operate at different levels. One of the key aspects of Australian law is the concept of Commonwealth law. Commonwealth law refers to the laws made by the federal Parliament of Australia, which has power over the entire country. This is in contrast to state laws, which only apply within the individual states and territories of Australia.
The Australian Constitution sets out the powers of the Commonwealth Parliament and establishes the framework for Commonwealth law. The Constitution outlines the specific areas in which the Commonwealth Parliament can make laws, known as 'heads of power'. These include areas such as taxation, trade and commerce, defence, immigration, marriage, and copyright. Any law made by the Commonwealth Parliament must fall within one of these heads of power to be valid.
One of the key features of Commonwealth law is its supremacy over state laws. In cases of conflict between a Commonwealth law and a state law, the Commonwealth law will prevail. This is known as the 'supremacy' of Commonwealth law. This principle is established in the Australian Constitution, which states that the laws made by the Commonwealth Parliament 'shall be binding on the courts, judges, and people of every State and of every part of the Commonwealth'.
The process of creating Commonwealth law begins with a bill being introduced into one of the two houses of the Parliament: the House of Representatives or the Senate. The bill must then pass through several stages, including debate and a voting process, in both houses. If the bill is passed by both houses, it is then presented to the Governor-General for royal assent. Once royal assent is received, the bill becomes an Act of Parliament and forms part of the body of Commonwealth law.
In conclusion, Commonwealth law is a fundamental aspect of the Australian legal system, operating alongside state laws but with ultimate supremacy. The process of creating Commonwealth laws involves both houses of Parliament, with the final assent given by the Governor-General. By understanding the scope and process of Commonwealth law, we can better appreciate the complex interplay between the different levels of government in Australia and the resulting legal framework that governs the country.
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The role of the Treasury
At the heart of its responsibilities is the management of the national budget and financial system. This involves formulating tax policies, allocating government expenditures, and managing the country's debt and financial risks. The Treasury provides economic forecasts and analysis to support these functions, ensuring that the government's financial decisions are informed and strategic.
Another critical aspect of the Treasury's role is shaping fiscal and monetary policies. It advises on policies that impact employment, inflation, and economic growth. Collaborating closely with the Reserve Bank of Australia, the Treasury helps maintain a stable financial system and a strong Australian dollar. Additionally, the Treasury plays a significant part in trade and investment policies, promoting free and open markets, and negotiating international agreements that align with Australia's economic interests.
The Treasury also has a regulatory function, overseeing financial institutions and markets to ensure stability and protect consumers. It works closely with the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) to maintain the integrity of the financial system. Furthermore, the Treasury contributes to social policy development, ensuring that economic policies are consistent with social objectives in areas such as education, healthcare, and welfare.
Overall, the Treasury plays a pivotal role in shaping Australia's economic landscape, driving growth, and maintaining financial stability. Its responsibilities encompass a wide range of economic and financial matters, from budget management to regulatory oversight, and its work directly impacts the lives of all Australians by influencing the country's economic trajectory and prosperity.
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The Australian Constitution
The Constitution arose from a growing Australian identity and the fear of the increasing presence of German and French colonies in the Pacific. A series of conferences, promoted by the premier of New South Wales, Henry Parkes, were held between 1890 and 1891 to discuss federalism. These conferences were attended by most colonial leaders, and by 1891, the movement for federalism had gained significant momentum. A draft constitution was drawn up at this time, but it lacked popular support and sidestepped critical issues such as tariff policy.
In 1895, the premiers of the six Australian colonies agreed to establish a new convention by popular vote, which met from 1897 to 1898. This convention produced a new draft that included provisions for responsible government but did not include a bill of rights. The final draft of the Constitution was approved by a vote of the people in referendums held between 1898 and 1900. It was then agreed upon by the British Parliament, which passed the Commonwealth of Australia Constitution Act in July 1900.
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The Premier
Australia is a federation comprising six states: New South Wales, Queensland, South Australia, Tasmania, Victoria, and Western Australia. Each state has its own constitution, which divides the state's government into the legislature, executive, and judiciary—mirroring the federal government's structure. The six state parliaments can pass laws on any matter that the Commonwealth does not control under Section 51 of the Australian Constitution.
The head of each state government is called the Premier. The powers of the monarch over state matters are delegated to a Governor in each state. The Premier is the leader of the state or territory, responsible for the state's overall governance, and accountable to the state's parliament and people. They are similar to a Prime Minister but at the state level.
In addition to the six states, Australia has ten territories outside the states' borders. Two mainland territories, the Australian Capital Territory (ACT) and the Northern Territory, have limited self-government rights, with locally elected parliaments handling various governmental matters. Seven territories are governed solely by Commonwealth law, administered by an Australian Government-appointed Administrator. In cases where state laws conflict with Commonwealth laws, the Constitution dictates that Commonwealth law takes precedence.
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Frequently asked questions
There are six states in Australia: New South Wales, Queensland, South Australia, Tasmania, Victoria, and Western Australia.
The head of each state government is known as the Premier.
There are ten Australian territories outside the borders of the states. Two mainland territories, the Australian Capital Territory (ACT) and the Northern Territory, have been granted a limited right of self-government by the federal government.
When the laws of a state conflict with those of the Commonwealth of Australia, the Constitution states that Commonwealth law is to be followed.































