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How Australia's government works

Part 3 of the booklet has more sections than any other part. This guide puts the whole system on one page, in the order the pieces fit together.

Short answer

Australia is a parliamentary democracy. Its Constitution, in force since 1 January 1901, divides power between Parliament, which makes laws, the executive, which puts them into practice, and the courts, which interpret them. There are three levels of government: the Australian Government, the six states and two mainland territories, and local councils. The King is Head of State, and the Governor-General carries out his role in Australia.

Six colonies, one nation

Before 1901, Australia was six separate British colonies. Trade and transport between them was slow and expensive, enforcing the law across borders was hard, and defence was weak. A shared identity was growing too, in sporting teams that represented Australia and in Australian songs, poems, stories and art. On 1 January 1901 the colonies united as the Commonwealth of Australia. This is called Federation.

The Constitution sets the rules

The Australian Constitution sets out the basic rules for the government of Australia. It was passed as part of a British Act of Parliament in 1900 and came into effect on 1 January 1901. It is the supreme law, and the government must follow it. It set up the Parliament, with its two Houses, and the High Court, which has the final say on applying and interpreting the law.

Only the people can change the Constitution, by voting in a referendum. A change needs a double majority: a majority of voters in a majority of states, and a majority of voters across the nation. In the 1967 referendum, more than 90 per cent of Australians voted Yes to allow Aboriginal peoples to be counted in the Census.

Three levels of government

Each level has its own leader and elected representatives, and each generally looks after different things.

1

Australian Government

Led by the Prime Minister

  • Taxation
  • The national economy
  • Immigration and citizenship
  • Social security
  • Defence
  • Trade
  • Foreign affairs
  • Post and communications
  • Employment assistance
  • Airports and air safety
2

States and territories

Led by the Premier or Chief Minister

  • Hospitals and health
  • Schools
  • Roads and railways
  • Police and ambulance
  • Public transport
  • Forestry
3

Local government

Led by the Mayor or Shire President

  • Local roads and footpaths
  • Street signs and traffic controls
  • Parks and pools
  • Libraries
  • Rubbish
  • Building permits
  • Drains
  • Food inspection
  • Noise and animal control
Some services overlap. In the Australian Capital Territory, the territory government also does the work of local councils.

States and territories differ in one important way. States have rights recognised by the Constitution, while the Australian Government can alter or revoke territory laws at any time. Each state has its own parliament and constitution, and a Governor represents the King in each state. In the Northern Territory, the Governor-General appoints an Administrator to a similar role.

The separation of powers

The Constitution divides the power of government three ways, so that no one person or group holds all of it.

Legislative power

Parliament

Makes and changes laws. Elected by the people.

Executive power

The government

Puts laws into practice: the Prime Minister, ministers and the Governor-General.

Judicial power

The courts

Interpret and apply the law. Judges are independent of Parliament and the government.

Divided so no one person or group holds all the power

The separation of powers, set out in the Constitution.

Parliament has two Houses

Both Houses of the Australian Parliament consider, debate and vote on new laws and changes to laws, and discuss matters of national importance.

  • The House of Representatives, also called the Lower House or the People's House, has about 150 members (the booklet describes it as over 150). Each member represents an electorate, and states with more people have more members.
  • The Senate has 76 senators. Each state elects 12, whatever its size or population, and the Australian Capital Territory and the Northern Territory elect two each.

After an election, the party or coalition with a majority in the House of Representatives forms the government, and its leader becomes Prime Minister. The second-largest group forms the Opposition, led by the Leader of the Opposition. The Prime Minister recommends ministers, the Governor-General approves them, and the most important ministers form the Cabinet, the government's key decision-making body.

How a Bill becomes law

A proposed law is called a Bill. It has to pass both Houses before it can become law.

  1. A Bill is proposed

    A member of Parliament proposes a new law or a change to a law.

  2. Both Houses debate and vote

    The House of Representatives and the Senate each debate it. A majority in each must agree.

  3. Royal Assent

    The Governor-General signs it.

  4. It is law

    The Bill is now an Act, and everyone must follow it.

How a Bill becomes law in the Australian Parliament. State and territory parliaments work in a similar way.

The King and the Governor-General

Australia is a constitutional monarchy: the King is Head of State, but he must act according to the Constitution. Because he doesn't live in Australia and has no day-to-day role, his powers pass to the Governor-General, who is appointed by the King on the advice of the Prime Minister.

The Governor-General isn't part of the government and must stay neutral. The role includes:

  • signing Bills into law, which is called Royal Assent
  • approving the appointment of the government, ministers and federal judges
  • starting the process for federal elections
  • ceremonial duties, and acting as Commander-in-Chief of the Australian Defence Force.

The Governor-General also has reserve powers, which can only be used in specific circumstances.

Who leads what

GovernmentLeader
The Australian GovernmentPrime Minister
A state governmentPremier
A territory governmentChief Minister
A local councilMayor or Shire President

A Member of Parliament represents the people in the Australian Parliament or a state parliament. A Senator represents a state or territory in the Australian Parliament. A councillor is an elected member of a local council.

Your part: voting

Australian citizens aged 18 or over must enrol and vote in federal, state and territory elections and in referendums. Voting is by secret ballot, so no one can know whom you voted for unless you tell them, and not voting without a good reason can mean a fine. The Australian Electoral Commission, which is independent of the government, runs federal elections and referendums and keeps the electoral roll.

Check yourself

Four questions from the CitizenOz question bank, written from Part 3 of the booklet. Pick an answer to check it.

1. How many senators are there in total?

2. What is a 'double majority' in a referendum?

3. What is Royal Assent?

4. Why does the Constitution divide the power of government?

Questions people ask

What are the three levels of government in Australia?

The Australian Government, also called the federal or Commonwealth Government; the state and territory governments; and local government, made up of councils.

How many senators are there in Australia?

76. Each of the six states elects 12 senators, and the Australian Capital Territory and the Northern Territory elect two each.

Who is Australia's Head of State?

The King. Because he doesn't live in Australia, his powers pass to the Governor-General, who must act according to the Constitution.

What is Royal Assent?

The Governor-General signing a Bill after both Houses of Parliament have agreed to it. That is the moment the Bill becomes law.

Sources

Facts are from Part 3 of the booklet, pages 24 to 32, checked on 5 October 2026. The House of Representatives currently has 150 members; the booklet's wording is "over 150". CitizenOz is not affiliated with the Australian Government.

Practise the way the test is marked

CitizenOz has 444 questions written from the booklet, practice tests marked by both pass rules, a values drill and every question read aloud. Start with the free practice test on this site.

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