Australia has three levels of government: federal (national laws, defence, immigration), state/territory (schools, hospitals, roads), and local (rubbish collection, local parks, development approvals). Understanding what each level does is essential for the Australian Citizenship Test.
Australia is governed by three distinct levels of government: federal, state/territory, and local. Each level has its own responsibilities, powers, and elected representatives. Knowing how these levels interact — and what each one does — is a core topic on the Australian Citizenship Test, and questions about it appear in almost every sitting.
According to the Department of Home Affairs, the Australian system of government is a federal parliamentary democracy, meaning power is shared between a national government and the governments of six states and two territories.
Level 1: The Federal Government
The federal government — also called the Commonwealth government — governs the entire nation from Canberra. It was established when the six colonies federated on 1 January 1901, forming the Commonwealth of Australia.
What the Federal Government is Responsible For
- Defence and national security — the Australian Defence Force
- Foreign affairs — international relations and treaties
- Immigration and citizenship — visas, naturalisation, border control
- Taxation — income tax, GST (goods and services tax)
- Social security — Centrelink payments, Medicare
- Trade and commerce — international trade agreements
- Post and telecommunications — Australia Post, NBN
- Currency — the Australian dollar
Structure of the Federal Parliament
The federal parliament consists of two houses:
- The Senate — the upper house, with 76 senators (12 from each state, 2 from each territory). Senators serve 6-year terms.
- The House of Representatives — the lower house, with 151 members. Members serve 3-year terms. The party or coalition that wins the most seats in the House of Representatives forms government.
The Role of the Prime Minister
The Prime Minister is the head of the federal government and leads the Cabinet (the key decision-making body). The Prime Minister is the leader of the party or coalition with majority support in the House of Representatives. This is distinct from the Governor-General, who is the King's representative in Australia and acts on the advice of the Prime Minister in most matters.
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Start Practice QuizLevel 2: State and Territory Governments
Australia has six states and two self-governing territories. Each has its own parliament, premier (or chief minister in territories), and set of responsibilities.
The Six States
- New South Wales (NSW) — Premier leads the state parliament in Sydney
- Victoria (VIC) — Premier leads the state parliament in Melbourne
- Queensland (QLD) — Premier leads the state parliament in Brisbane
- Western Australia (WA) — Premier leads the state parliament in Perth
- South Australia (SA) — Premier leads the state parliament in Adelaide
- Tasmania (TAS) — Premier leads the state parliament in Hobart
The Two Self-Governing Territories
- Australian Capital Territory (ACT) — Chief Minister leads parliament in Canberra
- Northern Territory (NT) — Chief Minister leads parliament in Darwin
What State and Territory Governments are Responsible For
- Education — public schools, TAFE colleges
- Health — public hospitals, ambulance services
- Roads and transport — state highways, public transport
- Police — state police forces
- Emergency services — fire and rescue, SES
- Agriculture and environment — land management, national parks
- Local government — state governments create and oversee local councils
Level 3: Local Government
Local councils (also called municipal councils, shires, or city councils) are the third level of government. There are approximately 537 local councils across Australia, each responsible for delivering services to their specific geographic area.
What Local Councils are Responsible For
- Rubbish and recycling collection
- Local roads, footpaths, and street lighting
- Parks, gardens, and recreational facilities
- Building and development approvals
- Libraries and community centres
- Local health and environmental regulations
- Animal registration (dog and cat registrations)
Local councils are led by an elected mayor (or shire president in some areas) and a group of elected councillors. Local council elections are held regularly in each state.
How the Three Levels Work Together
While each level has its own responsibilities, there is significant overlap and cooperation. For example:
| Responsibility | Federal | State/Territory | Local |
|---|---|---|---|
| Immigration | ✓ | ||
| Public hospitals | Funds Medicare | ✓ Operates | |
| Roads | National highways | State highways | Local roads |
| Parks | National parks (funding) | State parks | Local parks |
| Police | Federal Police (AFP) | State police |
Federation: Why Three Levels Exist
Before Federation in 1901, each colony operated independently. When the colonies united to form the Commonwealth of Australia, they agreed to give certain powers to the new federal government while retaining other powers for themselves. This is why Australia has a federal system rather than a single national government controlling everything.
The Australian Constitution defines which powers belong to the federal government. Powers not specifically granted to the federal government remain with the states. This is known as the division of powers or division of responsibilities.
Study This Section in Our Common Bond
The official study resource "Our Common Bond" covers Australian government structure in detail. Make sure you can answer questions about:
- The name and role of each house of parliament
- How many senators and House of Representatives members there are
- What each level of government is responsible for
- The difference between the Prime Minister and the Governor-General
- How the federal system was created (Federation, 1 January 1901)
Use our Study Guide to work through these topics systematically, and practice tests to test yourself under exam conditions.
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Get Free AccessFrequently Asked Questions
How many levels of government does Australia have?
Australia has three levels of government: federal (national), state/territory, and local. Each level has different responsibilities and elected representatives.
What is the federal government responsible for in Australia?
The federal government handles matters of national importance including defence, immigration, taxation, social security, foreign affairs, post, and telecommunications. These are powers specifically granted to the Commonwealth under the Australian Constitution.
Who leads each level of Australian government?
The Prime Minister leads the federal government. Each state is led by a Premier, while territories are led by a Chief Minister. Local councils are led by a mayor or shire president.
What is the difference between federal and state government in Australia?
The federal government governs the entire nation and handles national issues (defence, immigration, currency). State governments govern their specific state and handle regional services like schools, hospitals, and police.
Does Australia have a constitution?
Yes. The Australian Constitution, which came into effect on 1 January 1901, is the supreme law of Australia. It defines how the federal government works, the division of powers between federal and state governments, and the rights of citizens.