Lyla Lindsey
Australia is a country comprising six federated states and ten federal territories. The six states are New South Wales, Queensland, South Australia, Tasmania, Victoria, and Western Australia. The ten territories include the Australian Capital Territory, the Jervis Bay Territory, and the Northern Territory on the Australian mainland, and seven external territories. Australia is also considered a compact state in its engagement with the Pacific Islands Forum (PIF) and in the context of nursing and social work licensure compacts.
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What You'll Learn
Australia's engagement with the Compact States
Aid and Development Assistance: Australia has been the largest aid donor to the Pacific region since 2009. However, the Compact States receive significantly less aid compared to other Pacific island nations. According to the Lowly Institute Pacific Aid Map in 2019, the Compact States received only USD $10.79 million in aid from Australia. Nonetheless, Australia's development assistance to these countries has increased significantly over the last decade. For instance, the Federated States of Micronesia received USD $2.11 million in 2009, which increased to USD $5.06 million in 2019. Australia has also invested in specific programs, such as a USD $1.8 million collaboration with the Asian Development Bank to improve basic education in the Federated States of Micronesia.
Diplomatic Engagement: Australia has maintained diplomatic relations with the Compact States, with several ministerial visits from the Foreign Minister and the Minister for the Pacific and International Development since 2016. In December 2021, Marise Payne, the Australian Foreign Minister and Minister for Women, visited Palau to officially open the Australian embassy in Koror, ensuring Australia's presence in all three compact states. Additionally, Australia engages with these states through the Pacific Islands Forum (PIF), providing a platform for leadership discussions on key regional issues.
Infrastructure and Connectivity: Australia has contributed to infrastructure projects in the Compact States. For example, Australia partnered with Japan and the United States to fund Palau's new undersea fibre optic cable, valued at USD $30 million, to ensure reliable and secure digital connectivity for the country.
Water and Sanitation: In the Marshall Islands, Australia invested USD $4 million in the Ebeye water supply and sanitation project, which was completed in 2021.
Women's Empowerment: In Palau, Australia has invested USD $1.4 million in the Pacific Women Shaping Pacific Development program. This program aims to foster the economic empowerment of women, increase their participation in public life and decision-making, and reduce gender-based violence.
Maritime Security: Australia supports the Compact States through the Pacific Maritime Security Program (PMSP). As part of this program, Australia provides Guardian-class patrol boats to Pacific nations, including Palau and the Federated States of Micronesia, to enhance marine security in the region.
It is worth noting that the US and Japan are the main partners to the Compact States, and Australia works collaboratively with them as "like-minded" partners. Additionally, climate change is an area of challenge in the relationships between Australia and the Compact States, with countries like the Marshall Islands and Palau taking a leading role in climate change diplomacy.
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Australia's aid to the Compact States
Diplomatically, Australia has sought to strengthen its relationship with the Compact States through ministerial visits and the establishment of embassies. Since 2016, there have been seven ministerial visits from the Foreign Minister and the Minister for the Pacific and International Development. In December 2021, the Australian Foreign Minister, Marise Payne, visited Palau to officially open the Australian embassy in Koror, ensuring Australia's diplomatic presence in all three Compact States.
In terms of financial assistance, Australia has been the largest aid donor to the Pacific region since 2009. However, the Compact States receive significantly less aid from Australia compared to other Pacific island nations. According to the Lowly Institute Pacific Aid Map, the Compact States received only USD $10.79 million in aid from Australia in 2019. Nonetheless, Australia's development assistance to these states has increased significantly over the last decade. For instance, the Federated States of Micronesia received USD $2.11 million in 2009, which increased to USD $5.06 million in 2019. Australia has also invested in specific programs and collaborations, such as contributing USD $1.8 million towards improving basic education in the Federated States of Micronesia through a partnership with the Asian Development Bank.
Australia has also supported the Compact States through the Pacific Maritime Security Program (PMSP), providing new Guardian Class patrol boats to Pacific nations, including Palau and the Federated States of Micronesia, to enhance marine security in the region. Additionally, Australia has partnered with Japan and the United States to contribute to Palau's new undersea fibre optic cable, valued at USD $30 million, to ensure reliable and secure digital connectivity for the country.
Another area of focus for Australia's aid to the Compact States is addressing water supply and sanitation issues. In the Marshall Islands, Australia invested USD $4 million in the Ebeye water supply and sanitation project, which was completed in 2021. Furthermore, Australia has invested USD $1.4 million in Palau to improve the lives of Palauan women through the Pacific Women Shaping Pacific Development program. This program aims to foster economic empowerment, increase women's participation in public life and decision-making, and reduce gender-based violence.
While the US and Japan are the main partners to the Compact States, Australia remains committed to working with them as "like-minded" partners to address key challenges, including the impacts of climate change in the region.
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Australia's relationship with the US and Japan
Australia has a close relationship with the United States, with both countries being major non-NATO allies of each other. They have collaborated on several military operations, including the U.S.-led invasion of Iraq, and the War on Terror. The two countries also share common ancestry and history, having both been British colonies. They are also economically intertwined, with the United States being Australia's largest foreign investor. The US and Australia also have several common allies, including Japan.
The US and Australia have a strong security partnership, formalised by agreements such as ANZUS and AUKUS. In 2014, they signed the U.S.-Australia Force Posture Agreement, which facilitated the annual rotation of Marines to Darwin and enhanced rotations of U.S. Air Force aircraft to Australia. The US and Australia also participate in joint military exercises, such as Talisman Saber, to ensure interoperability between their defence forces.
The relationship between Australia and Japan dates back to the late 1800s, when Japan began importing Australian coal and wool. Japanese immigrants also came to Australia to work in various industries, including agriculture and pearl diving. This relationship continued until World War II, when Australia joined the Allies against Japan. After the war, Australia and Japan re-established bilateral relations in 1952, and their economic and cultural ties deepened with the 1957 Commerce Agreement and the 1976 Basic Treaty of Friendship and Cooperation (the Nara Treaty).
Today, Japan is Australia's closest partner in Asia, with a diverse and mature partnership underpinned by shared values and interests. They have strong defence and security ties, as evidenced by the 2007 Joint Declaration on Security Cooperation (renewed in 2022), which facilitated cooperation in areas such as law enforcement, border security, and counter-terrorism. The Australia-Japan relationship is also economically significant, with Japan being Australia's second-largest trading partner and export market in 2021.
Both the US and Japan are key partners to the Compact States, and Australia works closely with them in this regard. Australia has contributed to projects in the Compact States, such as the undersea fibre optic cable in Palau, and the Ebeye water supply and sanitation project in the Marshall Islands.
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Australia's six federated states
Australia is divided into six states and two territories. Each state has its own constitution, legislature, executive government, judiciary, and law enforcement agencies. The six federated states of Australia are:
- New South Wales (NSW): NSW is known for its wine regions, pristine seaside villages, and mountain wilderness. Sydney, the nation's biggest city, is located on the shores of Port Jackson in NSW.
- Queensland (QLD): Queensland is known as the 'Sunshine State' due to its subtropical climate and attractions such as the Great Barrier Reef and Whitsunday Islands. Its capital, Brisbane, enjoys warm and sunny weather throughout the year.
- South Australia (SA): South Australia is a laid-back destination, known for its wineries and arts scene. Its capital, Adelaide, is a great base for exploring the Barossa Valley and Kangaroo Island.
- Tasmania (TAS): Tasmania is an island state separated from mainland Australia by the Bass Strait. It offers breathtaking landscapes, including dazzling beaches, rugged mountains, and picturesque rivers. Its capital, Hobart, is a cosmopolitan city known for its regional towns and wine trails.
- Victoria (VIC): Victoria is the cultural heart of Australia, with its capital, Melbourne, being named the 'Most Liveable City in the World' multiple times. The state offers a diverse range of attractions, from museums and galleries to the Grampians National Park and the Great Ocean Road.
- Western Australia (WA): Western Australia is the largest state and is located on the west coast of the country. It boasts diverse attractions such as the Kimberley Region, Rottnest Island, and the Margaret River region. Its capital, Perth, is known for its serene beaches and fresh seafood.
These six states were formed from the federation of six separate British self-governing colonies in the 19th century, uniting to form the Commonwealth of Australia and establishing a federal system of government.
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Australia's federal territories
Australia is divided into six states and two territories, with each state and territory having its own unique mix of environments, cultures, and rhythms. The six states are:
- New South Wales (NSW)
- Queensland (QLD)
- South Australia (SA)
- Tasmania (TAS)
- Victoria (VIC)
- Western Australia (WA)
The two territories are:
- Australian Capital Territory (ACT)
- Northern Territory
In addition to the two territories, Australia also has ten federal territories, three of which are internal territories:
- Australian Capital Territory (ACT)
- Jervis Bay Territory
- Northern Territory
The other seven are external territories:
- Ashmore and Cartier Islands
- Australian Antarctic Territory
- Christmas Island
- Cocos (Keeling) Islands
- Coral Sea Islands
- Heard Island and McDonald Islands
- Norfolk Island
Every state and internal territory (except the Jervis Bay Territory) is self-governing with its own independent executive government, legislature, and judicial system. The Federal Parliament can override territorial legislation, and the federal High Court of Australia acts as the final court of appeal for all matters, with the authority to override any state judiciary.
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Frequently asked questions
A compact state is an agreement between states that facilitates cooperation and streamlines occupational licensing reciprocity.
Australia is not a compact state. However, it engages with the Compact States through aid, development assistance, and various collaborations and projects.
Australia is divided into six federated states: New South Wales, Queensland, South Australia, Tasmania, Victoria, and Western Australia.
States are partially sovereign, self-governing polities with their own constitutions, legislatures, executive governments, judiciaries, and law enforcement agencies. Territories are legally subordinate to the federal government but can be autonomous and administer local policies and programs.
