Australia has three levels of government: federal, state/territory, and local. There are 6 states and 2 self-governing territories. States have their own parliaments and constitutions, while territories are governed under laws made by the federal parliament. The Australian Citizenship Test asks about all three levels of government.
Australia has three levels of government: federal, state and territory, and local. For the Australian Citizenship Test, you must understand how these levels are structured, what powers each holds, and how they work together. According to the Department of Home Affairs, this is one of the most tested areas in the citizenship test.
Australia has 6 states and 2 self-governing territories at the state/territory level of government. Each state has its own parliament, premier, and constitution — but all operate within the framework of the Australian Constitution.
Australia's 6 States
The six states that form the Australian Federation are:
| State | Capital City | Head of Government |
|---|---|---|
| New South Wales (NSW) | Sydney | Premier |
| Victoria (VIC) | Melbourne | Premier |
| Queensland (QLD) | Brisbane | Premier |
| South Australia (SA) | Adelaide | Premier |
| Western Australia (WA) | Perth | Premier |
| Tasmania (TAS) | Hobart | Premier |
Australia's 2 Self-Governing Territories
In addition to the six states, Australia has two self-governing territories with their own parliaments:
- Australian Capital Territory (ACT) — capital: Canberra (which is also Australia's national capital)
- Northern Territory (NT) — capital: Darwin
The key difference between states and territories: territories derive their powers from the federal parliament, which can override territory laws. States have constitutional protections that make them harder to override.
What Do State and Territory Governments Do?
State and territory governments are responsible for services that directly affect daily life:
- Schools and education (primary and secondary)
- Hospitals and health services
- Roads, public transport, and infrastructure
- Police and emergency services
- Land and environment management
- Consumer protection and fair trading
- Local government oversight
What Does the Federal Government Do?
The federal (Commonwealth) government in Canberra is responsible for matters affecting the whole nation:
- Defence and national security
- Immigration and citizenship
- Taxation and customs
- Social security and welfare
- Foreign affairs and trade
- Medicare and the Pharmaceutical Benefits Scheme
- Universities and higher education
Practise Government Questions Now
Our quiz covers all three levels of government — the #1 topic on the Australian Citizenship Test.
Start Practice TestLocal Government — The Third Level
Below state and territory governments is local government — also called councils, city councils, or shire councils. There are over 500 local government councils across Australia. They are responsible for:
- Local roads and footpaths
- Rubbish collection and recycling
- Parks, gardens, and recreational facilities
- Planning and development approvals
- Local libraries and community centres
Local councils are funded through rates (property taxes) collected from local residents and businesses, plus grants from state and federal governments.
How Did Federation Create the States?
Before 1 January 1901, Australia consisted of six separate British colonies. On that date, they united to form the Commonwealth of Australia under the Australian Constitution. The colonies became the six states, each retaining significant powers while agreeing to share sovereignty with the new federal government.
This federal structure — where power is divided between a central government and regional governments — is a defining feature of Australia's democracy. It is extensively covered in the official "Our Common Bond" resource and forms a major part of the citizenship test study material.
The Role of Governors in Each State
Each state has a Governor who represents the King at the state level — just as the Governor-General represents the King at the federal level. The Governor:
- Formally appoints the Premier and ministers
- Opens and closes state parliament
- Signs state legislation into law
- Acts on the advice of the elected Premier in almost all situations
Similarly, the Northern Territory has an Administrator and the ACT has a Governor-General's representative.
Frequently Asked Questions
How many states and territories does Australia have?
Australia has 6 states (NSW, VIC, QLD, SA, WA, TAS) and 2 self-governing territories (ACT and NT). There are also several external territories such as Christmas Island and the Cocos (Keeling) Islands.
What is the difference between a state and a territory in Australia?
States have their own constitutions and cannot have their laws overridden by the federal parliament (except in specific areas). Territories derive their powers from the federal parliament, which can override territory laws at any time.
What are the three levels of government in Australia?
The three levels are: federal (Commonwealth) government in Canberra; state and territory governments in each capital city; and local government (councils) within each state and territory.
Who is the head of a state government in Australia?
Each state is led by a Premier, who is the leader of the party with majority support in the state parliament. Territories are led by a Chief Minister.
Does the Australian Citizenship Test ask about state governments?
Yes. The Australian Citizenship Test includes questions about the three levels of government, what each level is responsible for, and how state and territory governments relate to the federal government.