Overview
Australia operates under a federal system, dividing power between a national government, six states, two self-governing territories, and hundreds of local councils. Start here for the wider picture before exploring each level in detail.
Australia at a Glance
Australia is a federation - a union of formerly separate colonies that agreed in 1901 to form a single nation while keeping their identities as states. That decision created a system in which power is shared rather than concentrated in one parliament.
The Constitution defines what the Commonwealth can do, with the states retaining broad powers over many day-to-day services. Territories have their own self-governing legislatures but do not have exactly the same constitutional status as states. Local government sits below them, and are both created and regulated by state or territory law.
Why this matters
The level of government responsible for a problem usually determines who makes the rules, who pays for the service, and who voters should hold accountable. Hospitals, schools, immigration, rubbish collection, roads, taxation, and planning approvals do not all sit within the powers of the same parliament.
How to Use This Guide
This five-part series explains Australia’s system of government for general readers - whether you are a new voter, new to Australia, or simply brushing up. Each page can stand alone, but they work best in sequence.
Start here for the wider picture, then move through the national parliament, the states and territories, local government, and finally the different voting systems used across Australian elections.
1. Overview · 2. Federal Government · 3. States & Territories · 4. Local Government · 5. Voting Systems
The Three Levels of Government
Federal Government
The federal government handles national matters: defence, immigration, foreign affairs, Medicare, social security, corporations law, and federal taxation. It sits in Canberra and includes the House of Representatives and the Senate.
State & Territory Governments
State and territory governments are responsible for many of the services people use most often, including hospitals, schools, police, roads, and planning. Their structures vary, and the territories have a different constitutional status from the states.
Local Government
Local councils deal with neighbourhood-level services such as rubbish collection, local roads, parks, libraries, and some planning decisions. Councils are not constitutionally separate governments in the same way as the Commonwealth and the states.
The Constitution
The Constitution is the key document that establishes the federal Parliament, executive government, and High Court, and sets the framework for how power is divided between the Commonwealth and the states.
The three levels at a glance
| Level | Who | Key responsibilities | How elected |
|---|---|---|---|
| Federal | Prime Minister, Cabinet, Senate, House of Representatives | Defence, immigration, Medicare, social security, finance and income tax | National elections every 3 years (lower house maximum term) |
| State & Territory | Premiers, Chief Ministers, Cabinets, parliaments and assemblies | Hospitals, schools, police, roads, planning | State and territory elections |
| Local | Mayors, shire presidents, councillors | Rubbish, local roads, parks, libraries, development approvals | Local council elections |
Who Does What?
Federal Responsibilities
- Defence and national security
- Foreign affairs and immigration
- Currency and banking
- Medicare and social security
- Federal taxation
- Marriage and divorce law
State & Territory Responsibilities
- Public hospitals and ambulance services
- Schools and TAFE
- Police and emergency services
- Roads and public transport
- Planning and development approvals
- State courts and criminal law
Local government responsibilities
- Waste and recycling
- Footpaths and local streets
- Parks, playgrounds, and community facilities
- Libraries and many local amenities
- Some planning and local regulatory matters
When powers overlap
Not every issue belongs neatly to one level alone. Health, education, infrastructure, housing, transport, and the environment often involve multiple levels of government at once, which is why responsibility can sometimes feel blurred in public debate.
And there is a clear cost to having these separate, discrete levels of government. Throughout our research when establishing Votality we have found different approaches and systems in all the states when it comes to addressing the same issues, whether it is political funding, the control of lobbying or the registration of interests – each state even has different systems for reporting traffic injuries and fatalities. This constant "reinvention of the wheel" in different jurisdictions imposes real costs across the economy.
How Elections Fit In
Australians vote at different levels and under different electoral systems. Lower houses usually determine who forms government. Upper houses often act as review chambers. Local elections choose councillors and, in some places, mayors.
That means understanding Australian government is not only about who does what — it is also about how representatives are chosen, what different ballot papers mean, and why systems such as preferential voting and proportional representation matter.
Next step: Voting Systems
The final page in this series explains the key systems used across Australian elections, including full preferential voting, optional preferential voting, proportional representation, and Hare-Clark.
Continue Through the Guide
Federal Government
Learn how Australia’s national parliament works, what the House and Senate do, and how governments are formed in Canberra.
State & Territory Governments
See how states and territories run hospitals, schools, police, and public transport — and why territories are constitutionally different from states.
Local Government
Understand what councils actually do, how they are created, and why local elections affect daily life more than many people realise.
Voting Systems
Get clear explanations of preferential voting, proportional representation, and Hare-Clark, with practical examples.