Damon Mcknight
Australia has three levels of government: federal, state or territory, and local. The federal government is led by the prime minister, who is a member of the lower house and is appointed by the governor-general. The state governments have their own constitutions and parliaments, with powers that include justice, health, education, and public transport. Local councils are established by state governments and are responsible for local laws, road maintenance, garbage collection, and public recreation facilities. Australians aged 18 and over vote for representatives at each level of government.
| Characteristics | Values |
|---|---|
| Number of government levels | 3 |
| Government levels | Federal, state or territory, and local |
| Federal government leader | Prime Minister |
| Federal government responsibilities | Foreign affairs, social security, industrial relations, trade, immigration, currency, defence |
| State government responsibilities | Justice, consumer affairs, health, education, forestry, public transport, main roads |
| Local government responsibilities | Local road maintenance, garbage collection, building regulations, land subdivisions, public health, recreation facilities |
| State government formation | Australians aged 18+ vote for representatives to federal, state, and local councils |
| Local government formation | Local councils are established by state governments; the decision-making body is usually called the city council or shire council |
| Federal Parliament | Consists of two houses: the House of Representatives and the Senate |
| House of Representatives | Each representative is elected to represent a separate division or electorate in Australia |
| Senate | Also referred to as the 'state's house' or the 'house of review'; includes 12 senators for every state and 2 senators for each territory |
| Federal Executive Council | Australia's highest formal governmental body; meets to endorse and give legal force to cabinet decisions |
| Cabinet | Key decision-making organ of the government; includes the Prime Minister and their sworn ministers |
| Governor-General | Appoints the Prime Minister; normally appoints the parliamentary leader who commands the confidence of the majority of the House of Representatives |
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What You'll Learn
Australia's three levels of government
Australia has three levels of government: federal, state or territorial, and local. Australians over the age of 18 are required to enrol and vote for individuals to represent them at each level. The federal government is led by a Prime Minister, who is elected by their fellow party members as the leader of the party that has won the majority of members elected to the House of Representatives. The federal government's responsibilities include foreign affairs, social security, industrial relations, trade, immigration, currency, and defence. The federal government raises money through taxes on income, spending, and businesses, which is then spent on federal matters such as Medicare, defence, immigration, and foreign policy.
The state governments are led by a Premier. Each state has its own constitution, and each state parliament has two houses: the Legislative Assembly and the Legislative Council. Members of the state parliament are generally referred to as 'Members', specifically Members of the Legislative Assembly (MLA), Members of the House of Assembly (MHA), or Members of the Legislative Council (MLC). State government responsibilities include justice, consumer affairs, health, education, forestry, public transport, and main roads.
Local government responsibilities include local road maintenance, garbage collection, building regulations, land subdivisions, public health, and recreation facilities. Local councils are established by state governments to address the specific needs of a city or local community. While local councils are not mentioned in the Australian Constitution, each state has a local government Act that provides rules for the creation and operation of councils. These Acts vary from state to state, but they generally cover how councils are elected and their power to make and enforce local laws, known as by-laws.
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Federal, state and territory parliaments
Australia has three levels of government: federal, state or territory, and local. Australians over the age of 18 vote to elect representatives to federal, state, and territory parliaments, as well as local councils. Each level of government has its own responsibilities, although there is some overlap. The federal government raises money through taxes on income, spending, and businesses, and spends it on matters such as Medicare, defence, immigration, and foreign policy.
The federal parliament, consisting of two houses – the House of Representatives and the Senate – is the decision-making body of the federal government. The House of Representatives is made up of members, each representing a separate division or electorate in Australia. The Senate, also known as the 'state's house' or the 'house of review', plays a joint role with the House of Representatives in reviewing, debating, and voting on proposed laws. There are 12 senators for every state and two senators for each territory, representing their entire state or territory.
The prime minister, who is the leader of the federal government, is appointed by the governor-general, who is the federal representative of Australia's monarch. The prime minister and their sworn ministers form the cabinet, which is the key decision-making body of the government. The cabinet meets weekly to discuss vital issues and formulate policy, although its decisions do not carry legal force. Instead, it serves as the practical expression of the Federal Executive Council, which is Australia's highest formal governmental body. The Federal Executive Council meets to endorse and give legal force to decisions already made by the cabinet.
The state and territory government responsibilities include justice, consumer affairs, health, education, forestry, public transport, and main roads. The Northern Territory and the Australian Capital Territory each have a unicameral parliament called the Legislative Assembly, led by a Chief Minister. Councils, which are established by state governments, are the decision-making bodies of local governments. They are led by a Mayor or Shire President and are responsible for local matters such as road maintenance, garbage collection, building regulations, and land subdivisions.
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Local councils and their powers
Australia has three levels of government, with the federal government at the top, state governments in the middle, and local councils at the bottom. The three levels work together to provide services to the Australian people.
Local councils are not mentioned in the Australian Constitution, but each state has a local government Act that provides the rules for the creation and operation of councils. These Acts vary from state to state, but generally cover how councils are elected and their power to make and enforce local laws, known as by-laws. By-laws are a form of delegated legislation, as the state government gives the councils the authority to make laws on specific matters. Councils derive their powers from state parliaments, and council by-laws may be overruled by state laws.
There are over 500 local councils in Australia, and they are responsible for making local laws (by-laws) for their region or district. Local councils are generally run by a council, and their territory of public administration is referred to as the local government area or LGA. Local governments have very limited legislative powers and no judicial powers, and they are subject to the exclusive jurisdiction of the state or territory they belong to. The functions and practices of local councils are mostly centred around managing public services and land use at the community level.
Local governments receive part of their income in grants from federal, state, and territory executive governments. Councils also raise their own money from local taxes such as rates (tax on the value of property), sewerage and water charges, dog licences, and user fees for sporting facilities and libraries. Collectively, councils raise more than 80% of their own revenue, with rates accounting for about 38% of this revenue.
In Queensland and Western Australia, LGAs have been granted the power to independently enact their own local subsidiary legislation, in contrast to the previous system of by-laws. Councils have also organised their own representative structures such as Local Government Associations and Regional Organisations of Councils.
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The role of the Prime Minister
Australia has three levels of government, which work together to provide services to the country's citizens. The federal and state parliaments work together in what is referred to as the division of powers. Each level of government has its own responsibilities, although sometimes these are shared. Australians elect representatives to federal, state and territory parliaments, and local councils, to make decisions on their behalf.
The Prime Minister has significant influence over foreign policy, through their role as chair of the National Security Committee, a sub-committee of cabinet. The Prime Minister is also one of the responsible ministers for the Department of the Prime Minister and Cabinet, whose tasks include general policy development across the government, inter-governmental communications, honours and symbols policy, and Indigenous programmes. The Prime Minister's Office (PMO) provides political advice and executive support to the Prime Minister. The PMO is led by the Prime Minister's Chief of Staff and/or Principal Private Secretary.
Since the emergence of the strong party system in Australia in the 1920s, Prime Ministers have almost always been the parliamentary leader of the party (or leader of the senior party in a coalition of parties) that has a majority in the House of Representatives. This has typically been either the Labor Party or the Liberal Party in coalition with the National Party.
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How the government raises and spends money
The Australian government raises and spends money through various means, including taxation, government bonds, and revenue from state-owned enterprises. The federal government raises around 81% of total tax revenue in Australia, with individuals' income tax being the single most important source of government revenue. This progressive tax system ensures that high-income individuals pay a larger proportion of their earnings in tax. Other sources of tax revenue include corporate income taxes, payroll taxes, stamp duties, and taxes on land, gambling, and motor vehicles.
The government also receives income through the not-for-profit (NFP) sector, which benefits from various tax concessions. While these concessions encourage NFP activity, they also result in significant revenue losses for the government. State and Territory governments in Australia spend more than they raise in revenue, relying on grants from the federal government to balance their budgets.
The process of budgeting and allocating funds is a collaborative effort. The Treasurer, along with the Treasury Department, prepares the budget documents, consulting with other ministers to develop budgets for each government department. The Cabinet, including the Prime Minister and other senior ministers, approves the budget before it is introduced to Parliament. The Treasurer's budget speech, delivered to the House of Representatives, outlines the government's plans for expenditure, new projects, and changes to taxation or savings.
The government's spending is closely monitored, with the Parliamentary Budget Office providing transparency by allowing members of parliament and the public to examine government expenditures. Budget documents and the Treasurer's speech offer insights into the government's financial plans and priorities, and the Senate actively scrutinizes the use of the budget throughout the year.
The Australian government's budget for 2025-26 includes tax cuts for taxpayers and investments in essential health services, such as Urgent Care Clinics, public hospitals, and the health workforce.
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Frequently asked questions
Federal, state or territory, and local.
Six: New South Wales, Western Australia, Queensland, Victoria, South Australia, and Tasmania.
State government responsibilities include justice, consumer affairs, health, education, forestry, public transport, and main roads.
The federal and state governments work together, with each level having its own responsibilities, although sometimes these responsibilities are shared.
