
Australia has three levels of government that work together to provide services to its citizens: the federal government, six state and two territory governments, and over 500 local councils. Each level of government has its own responsibilities, though there are areas where these responsibilities overlap. The federal government is responsible for issues such as defence, foreign affairs, and customs, while state and territory governments handle matters including education, health, and local emergency services. Local councils are responsible for local issues such as road maintenance, garbage collection, and building regulations. Australians aged 18 and over elect representatives to federal, state, and territory parliaments, as well as local councils, ensuring that they have someone to represent them at each level of government.
| Characteristics | Values |
|---|---|
| Number of Levels | 3 |
| Federal Government Responsibilities | Defence, border security, customs, trade, foreign affairs, money, airports, seaports, Medicare, immigration, radio broadcasting, digital services, education, health, water management, and more. |
| State and Territory Government Responsibilities | Schools, hospitals, emergency services, public housing, the environment, justice, consumer affairs, health, education, forestry, public transport, main roads, and more. |
| Local Government Responsibilities | Local road maintenance, garbage collection, building regulations, land subdivisions, public health, recreation facilities, town planning, sewerage, local roads, and more. |
| Number of Federal Parliament Houses | 2 (House of Representatives and the Senate) |
| Number of State Parliament Houses | 2 (except for Queensland Parliament, which has 1) |
| Number of Territory Parliament Houses | 1 |
| Number of Local Councils | Over 550 |
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What You'll Learn

Federal government laws
Australia has three levels of government that work together to provide services to the country. 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. Over 500 local councils make local laws (by-laws) for their region or district. Each level of government has its own responsibilities, although sometimes these responsibilities are shared.
The Federal Parliament is located in Canberra, the nation's capital. The decision-making body of the federal government consists of two houses: the House of Representatives and the Senate. The leader of the federal government is called the Prime Minister. This is a person who has been 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 Senate is also often referred to as the ‘state’s house’ or the ‘house of review’. It plays a joint role with the House of Representatives in reviewing, debating, and voting on proposed laws.
The federal government raises money through taxes on incomes, spending, and businesses. The money is spent on federal matters such as Medicare, defence, immigration, and foreign policy. The federal government also makes laws about postal, telegraphic, and telephonic services, as well as other similar services.
Section 109 of the Constitution states that if the federal Parliament and a state parliament pass conflicting laws on the same subject, then the federal law overrides the state law or the part of the state law that is inconsistent with it.
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State and territory government laws
Australia has three levels of government that work together to provide services to the country's citizens. The federal parliament, located in Canberra, makes laws for the whole of Australia. Six state parliaments and two territory parliaments make laws for their respective states or territories.
State and territory governments receive more than half of their money from the federal government and also collect taxes. This money is spent on state matters such as roads, housing, prisons, public transport, police, and ambulance services. The decision-making body of state government is the state parliament, which meets in the parliament house of the particular state. Each state parliament, except for Queensland, consists of two houses. Representatives elected to state parliaments are generally referred to as 'Members' – Members of the Legislative Assembly (MLA), Members of the House of Assembly (MHA), or Members of the Legislative Council (MLC). The leader of a state government is called the Premier.
The Northern Territory and the Australian Capital Territory have a different arrangement. Each territory parliament has one house called the Legislative Assembly. The leader of each territory government is called the Chief Minister.
State and territory government responsibilities include justice, consumer affairs, health, education, forestry, and main roads. The Australian Capital Territory is unique in Australia because its parliament combines the responsibilities of both a local and state government.
Local councils are not mentioned in the Australian Constitution, but each state has a local government Act that provides rules for the creation and operation of councils. While these Acts vary from state to state, they generally cover how councils are elected and their power to make and enforce local laws, known as by-laws. A by-law is a form of delegated legislation because the state government delegates to councils the authority to make laws on specific matters. As councils derive their powers from state parliaments, council by-laws may be overruled by state laws.
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Local council laws (by-laws)
Australia has three levels of government that work together to provide services to the country. The federal parliament makes laws for the whole of Australia, the six state and two territory parliaments make laws for their respective state or territory, and over 500 local councils make local laws (by-laws) for their region or district.
Local councils are not mentioned in the Australian Constitution, but each state has a local government Act – a law that provides the rules for the creation and operation of councils. While these Acts differ from state to state, they generally cover how councils are elected and their power to make and enforce local laws, or by-laws. A by-law is a form of delegated legislation, as the state government gives councils the authority to make laws on specific matters. Council by-laws are subordinate to state laws, and council powers derive from state parliaments.
The people's representatives in the council are called aldermen or councillors, and the head of the council is the Mayor or Shire President. Local governments are responsible for local road maintenance, garbage collection, building regulations and land subdivisions, public health, and recreation facilities such as swimming pools.
Victorian councils have the broad power to make local laws under the Local Government Act 2020, which continues the long-standing ability for councils to make local laws. Councils utilise local laws to respond to issues and community needs within a local context. They typically deal with the protection of local amenities, as well as regulating activities on council-controlled land and roads.
Local governments must notify the public of a new local law by publishing a notice in the gazette and on their website. Within 14 days, they must provide the Minister for Local Government with a copy of the notice and the local law in electronic form. A register of local laws must be kept, and copies must be made available for purchase by the public at their offices. The public can also access a database of all local governments' local laws on the departmental website.
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How federal and state governments work together
Australia has three levels of government—the federal, state, and local—that work together to provide services to the people. The federal Parliament makes laws for the whole of Australia, while the six state and two territory parliaments make laws for their respective states or territories. Over 500 local councils make local laws (by-laws) for their region or district. Each level of government has its own executive that puts laws into action.
The decision-making body of the federal government is the Federal Parliament, which consists of two houses—the House of Representatives and the Senate. The leader of the federal government is called the Prime Minister. The Senate is also referred to as the 'state's house' or the 'house of review' as it plays a joint role with the House of Representatives in reviewing, debating, and voting on proposed laws. The federal government raises money through taxes on incomes, spending, and businesses, which is spent on federal matters such as Medicare, defence, immigration, and foreign policy.
The decision-making body of the state government is the state parliament, which meets in the Parliament House of the particular state. Each state parliament, except for Queensland, is made up of two houses. Representatives elected to state parliaments are generally known as 'Members'—Members of the Legislative Assembly (MLA), Members of the House of Assembly (MHA), or Members of the Legislative Council (MLC). The leader of a state government is called the Premier. The Northern Territory and the Australian Capital Territory have a different arrangement, with each territory parliament having one house called the Legislative Assembly, and the leader of each territory government is called the Chief Minister. State and territory government responsibilities include justice, consumer affairs, health, education, forestry, public transport, and main roads.
Local councils are not mentioned in the Australian Constitution, but each state has a local government Act—a law that provides 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 or by-laws. A by-law is a form of delegated legislation, as the state government delegates to councils the authority to make laws on specific matters. As councils derive their powers from state parliaments, council by-laws may be overruled by state laws. Local government responsibilities include local road maintenance, garbage collection, building regulations, land subdivisions, public health, and recreation facilities.
The National Cabinet, which includes the Prime Minister, premiers, and chief ministers, meets regularly to discuss intergovernmental matters. Ministers from the various levels of government also work together on matters of common concern. For example, the Australian Health Ministers' Advisory Council meets regularly to negotiate a coordinated national approach to health policy. As a result of such intergovernmental discussions, uniform national laws have been made to tackle issues such as road transport, food standards, and consumer rights.
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Funding and spending
Australia has a federal system of government, with three levels: federal, state or territory, and local. Each level of government has its own powers, responsibilities, and funding sources, although there is some overlap.
Federal Funding and Spending
The federal government raises money through taxing incomes, spending, and businesses. The money is spent on federal matters such as Medicare, defence, immigration, foreign policy, taxation and currency, trade, postal services, air travel, telecommunications, and broadcasting. The federal government is also responsible for providing funding to state and local governments. Under section 96 of the Constitution, the federal government can give 'tied' grants to state governments, directing them on how to spend the money. Federal funding grants make up about half of the states' total revenue.
State/Territory Funding and Spending
State/territory governments receive more than half of their money from the federal government and also collect taxes. They spend this money on state matters such as roads, housing, prisons, public transport, police, and ambulance services. Each state has its own constitution and structure of legislature, executive, and judiciary branches. The head of each state government is called the premier, and the monarch is represented by a governor.
Local Funding and Spending
Local councils collect taxes (rates) from local property owners and receive funding from the federal and state governments. They spend this money on local matters such as town planning, sewerage, local roads, and rubbish collection. Local governments have the power to make by-laws, which are local laws on specific matters delegated to them by the state government. Councillors are elected to represent their communities and make decisions on policy, which are then administered by the council's chief executive officer and other non-elected employees.
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Frequently asked questions
The three levels of government in Australia are the federal government, state and territory governments, and local councils.
The federal government is the highest level of government in Australia. It is responsible for issues such as defence, border security, customs, trade, foreign affairs, and airports and seaports.
The Federal Parliament, which consists of the House of Representatives and the Senate, is the decision-making body of the federal government.
The state and territory governments are responsible for matters such as justice, consumer affairs, health, education, public transport, and main roads. They also share control with the federal government in areas such as public health, education, and the environment.



























