
Australia has three levels of government: federal, state, and local. The federal government, also known as the Commonwealth Government, is responsible for the conduct of national affairs. Its areas of responsibility are outlined in the Australian Constitution and include defence, foreign affairs, trade, immigration, postal services, telecommunications, broadcasting, air travel, and most social services and pensions. The federal government is also involved in areas such as health, education, and environmental issues, mainly through funding. The federal parliament, located in the nation's capital, Canberra, is responsible for making laws for the entire country.
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What You'll Learn

Defence and foreign affairs
The Australian Federal Government, also known as the Commonwealth Government, is responsible for the conduct of national affairs, including defence and foreign affairs. The Federal Parliament makes laws for the whole of Australia, while the six state and two territory parliaments make laws for their respective state or territory.
The Australian Defence Force (ADF) is the country's military force, established in 1901 with the amalgamation of the then-colonies' military forces. The ADF is relatively small for its landmass, with a total of 57,346 full-time active-duty personnel and 32,049 active reservists as of June 2023, but it is the largest military force in Oceania. It is supported by a significant budget and is well-equipped and trained, with defence spending at 2.02% of GDP as of 2024/25. The ADF's command structure includes the governor-general as the ceremonial commander-in-chief, the Minister for Defence, and the Chief of the Defence Force.
The ADF's responsibilities include counter-terrorism, with specialised units dedicated to countering terrorist threats, both domestically and offshore. It also includes the Australian Cyber Security Centre (ACSC), established in 2010, which is responsible for protecting the ADF and other government agencies from cyber attacks. The ADF has also been involved in international operations, working alongside the Australian Secret Intelligence Service (ASIS) in countries like Vietnam, East Timor, Iraq, and Afghanistan.
In the realm of foreign affairs, the Australian Government works with international partners to tackle global challenges, increase trade and investment opportunities, protect international rules, and maintain regional stability. The Department of Foreign Affairs and Trade plays a key role in this area, with a focus on enhancing Australia's engagement with the Pacific region and Southeast Asia.
The Federal Government's role in defence and foreign affairs is outlined in the Australian Constitution, which grants the Australian Parliament the power to make laws regarding defence and assigns the Commonwealth responsibility for defending Australia from invasion.
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Trade, commerce, currency, and immigration
The Australian Federal Government is responsible for the conduct of national affairs, including trade, commerce, currency, and immigration.
Trade
The Australian Government's Department of Foreign Affairs and Trade facilitates trade and investment. It provides data and information resources to help importers, exporters, producers, investors, and other Australian businesses trade and invest with other countries and regions. Australia also participates in international organisations such as the World Trade Organization (WTO), the G20, Asia-Pacific Economic Cooperation (APEC), and the Organisation for Economic Cooperation and Development (OECD) to build its economic growth and prosperity. The Trade 2040 Taskforce is an important part of the Australian Government's commitment to bringing together various stakeholders to progress the country's trade policy agenda.
Commerce
Foreign investment has played a crucial role in building Australia's economy, and the government actively seeks to attract it. This investment supplements domestic savings and supports economic growth and innovation.
Currency
The Australian Federal Government has the power to legislate with respect to "currency, coinage, and legal tender" under Section 51(xii) of the Constitution of Australia. The Australian dollar is a popular reserve currency and one of the most traded currencies globally due to its high interest rates, a relatively free foreign exchange market, and the stability of Australia's economy and political system.
Immigration
The Australian Federal Government develops and enforces laws affecting migration. The Department of Home Affairs administers the immigration program, which includes refugee and protection visas for those seeking asylum in Australia or its territories.
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Social services and pensions
The Australian Government Department of Social Services (DSS) is responsible for improving the economic and social well-being of individuals, families, and vulnerable community members. DSS offers a range of grant programs to support Australian communities. The department provides support in areas such as social security, ageing, financial well-being, online gambling harm, volunteering, community support, and family relationships.
The DSS also provides support for housing and homelessness, relocation, education, and employment. They offer a range of income support payments, benefits, and concessions to assist Australians during various life stages. These include the JobSeeker Payment, Partner Allowance, Widow Allowance, Sickness Allowance, and Wife Pension.
During World War II, the federal government, led by Prime Minister John Curtin and Treasurer Ben Chifley, significantly accelerated the development of Australia's welfare state. The Curtin government enacted several welfare initiatives, including a widows' pension, a wife's allowance, additional allowances for the children of pensioners, and unemployment, sickness, and special benefits.
In recent years, there have been discussions and changes to certain social security programs. For example, the Disability Support Pension (DSP) eligibility criteria were made stricter, and the Newstart Allowance was raised by 50 cents per day in 2018, which was criticised as inadequate. During the COVID-19 pandemic, the Federal Government announced the 'Temporary COVID Disaster Payment' for those who lost work due to lockdowns.
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Telecommunications and broadcasting
Historical Context
Prior to the Federation of Australia in 1901, each of the six Australian colonies had its own telephony communications network, modelled on British colonial legislation. The Postmaster-General's Department regulated telecommunications and operated telephone and related services until 1975, when it was replaced by the Postal and Telecommunications Department. In 1981, Aussat Pty Ltd was established to provide domestic satellite telecommunication and broadcasting services. However, it was restricted from competing with Telecom. The Australian Communications and Media Authority (ACMA) was formed in 2005 by merging the Australian Broadcasting Authority (ABA) and the Australian Communications Authority (ACA).
Current Role of the Federal Government
The Australian federal government, through the Australian Communications and Media Authority (ACMA), is responsible for licensing operators in the communications sector. The ACMA also plays a role in censoring inappropriate content online, particularly to protect children from accessing violent and pornographic material. While the ACMA does not set retail prices for mobiles, internet, or communications, it does regulate and set prices for certain wholesale transmission services. Additionally, the government provides funding to address broadband and mobile telephone blackspots and gaps in service provision, especially in regional and rural areas.
The Australian Competition and Consumer Commission (ACCC) is responsible for the economic regulation of the telecommunications sector, including the National Broadband Network (NBN) and mobile services. The ACCC promotes competition, protects consumers, and ensures that digital radio multiplex transmitter licensees do not discriminate anti-competitively between broadcasters. The Telecommunications Industry Ombudsman resolves individual disputes regarding mobile phones and internet services.
In summary, the Australian federal government actively participates in the regulation, licensing, and funding of telecommunications and broadcasting services, ensuring competition, consumer protection, and access to essential infrastructure for all Australians.
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Air travel
The Australian Federal Government has established the Whole of Australian Government (WoAG) Travel Arrangements, which are coordinated procurement procedures established and managed by the Department of Finance. These arrangements involve approximately 150 participating entities and over 20 suppliers, including three domestic airlines and 17 international airlines. The aim of these arrangements is to reduce travel-related costs and streamline processes for entities when booking and paying for official travel.
The WoAG airline panel provides the Australian Government with access to discounted airfares and beneficial fare conditions, such as increased baggage allowances, across an extensive network of domestic and international routes. The panel is non-exclusive, meaning entities may book air travel with non-panel airlines, but the fares offered by panel airlines often represent the best value for money due to reduced prices and favourable conditions.
The Australian Government Travel Management Services provider, CTM, arranges for the airline to suppress any reward points associated with the booking, although status credits are granted to Australian Government travellers. CTM also offers discounted access to airport lounge programs, although it is the responsibility of each entity to decide whether their staff members can access these.
CTM provides services including air travel, accommodation, car rental, and travel insurance, and bookings can be made through their Online Booking Tool (OBT) or via their consultant team for more complex travel arrangements. It is mandatory to book all official travel originating in Australia through CTM to ensure compliance with government policies and to take advantage of negotiated rates and terms.
The Australian Government has also implemented guidelines for airline and aircraft operators arriving in Australian territory, including requirements for in-flight announcements and disinsection measures to protect Australia's biosecurity.
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Frequently asked questions
The Federal Government is responsible for the conduct of national affairs. This includes defence, foreign affairs, trade, commerce, currency, immigration, postal services, telecommunications, broadcasting, air travel, and most social services and pensions. The Federal Government is also involved in health, education, environmental issues, and industrial relations, mainly through funding.
Australia has three levels of government: Federal, State, and Local. Each level has its own responsibilities, but they also work together to provide services to Australians. The Federal Government makes laws for the whole of Australia, while the State Governments make laws for their respective states or territories.
The Federal Government jointly runs Australia's health system with the State and Local Governments. Medicare, Australia's universal healthcare scheme, is available to citizens, permanent residents, and those from countries with reciprocal agreements. The Government also provides a means-tested rebate to help with the cost of private health insurance.











































