How does Australia's federal system divide power?

Power is split between the federal government, six states and two territories. Each level has its own parliament and responsibilities, such as defence federally and schools at state level. The Constitution outlines federal powers, with residual powers remaining with the states.

Which parties dominate Australian politics?

The centre-left Labor Party and the centre-right Liberal-National Coalition are the main parties, with the Greens and various minor parties also holding seats, particularly in the Senate. Minor parties have gained increasing influence in recent decades.

Where does Australian politics sit on the left-right spectrum?

Australian parties range from progressive left to conservative right, but most policies fall within a pragmatic middle ground compared with global counterparts. The major parties have gradually moved closer on economic policy while maintaining differences on social and environmental issues.

How does Australia's electoral system work?

Australia uses compulsory preferential voting, where voters must rank candidates in order of preference. Lower house elections use full preferential voting while the Senate uses proportional representation. This system encourages consensus politics and gives minor parties a pathway to representation.

What is the role of the Governor-General in Australian politics?

The Governor-General is the Queen's representative in Australia who performs constitutional, ceremonial and community duties. While they formally hold executive power, they act on the advice of ministers in almost all circumstances, with very rare 'reserve powers' used only in constitutional crises.

What is the difference between the House of Representatives and the Senate?

The House of Representatives (lower house) has 151 members elected from geographic electorates, with the party holding the majority forming government. The Senate (upper house) has 76 senators representing states and territories, elected using proportional representation, which often gives minor parties and independents the balance of power.

Australian Politics Explained: How Power, Parties and Policy Actually Work

Understanding how Australian politics works helps you make sense of election results and policy debates. Here's an overview of the institutions, parties and processes that drive government in Australia, from the federal system to how your vote influences policy.

Parliament House in Canberra with Australian flag

Parliament House in Canberra — seat of the Federal Government

Australia's constitutional framework

Australia became a federation in 1901 when the six British colonies agreed to unite under a written constitution. The Australian Constitution established a Westminster-style parliamentary system with elements of the American federal model, creating three branches of government:

Legislative branch (Parliament) – makes laws
Executive branch (Government) – administers laws
Judicial branch (Courts) – interprets laws

Unlike many countries, Australia doesn't have a bill of rights in its constitution. Instead, rights are protected through common law, parliamentary conventions, and some limited constitutional protections.

Three levels of government

Australia is a federation with power divided between the federal parliament and the states and territories. Local councils handle community services such as waste collection and planning. Read more about the three levels of government in our dedicated guide.

Federal Parliament: defence, foreign affairs, immigration, taxation, trade, social security
State and territory parliaments: health, education, policing, transport, utilities, emergency services
Local councils: roads, waste management, local planning, parks, community facilities

The federal parliament

Australia has a bicameral (two-house) parliament consisting of:

House of Representatives: 151 members elected from single-member electorates using preferential voting
Senate: 76 senators (12 from each state and 2 from each territory) elected using proportional representation

The party or coalition with a majority in the House of Representatives forms government, with its leader becoming Prime Minister. The Senate acts as a house of review, with different electoral cycles (3-year terms for the House, 6-year terms for senators).

The Senate's proportional representation system often results in minor parties and independents holding the "balance of power," meaning the government needs their support to pass legislation when it doesn't control a majority.

The electoral system

Australia has several distinctive electoral features:

Compulsory voting – eligible citizens must vote or face a small fine
Preferential voting – voters rank candidates in order of preference
Independent electoral commission – the Australian Electoral Commission (AEC) manages elections
Saturday voting – elections are held on Saturdays to maximize participation

These systems encourage high voter turnout (typically over 90%) and ensure that elected representatives have majority support from their constituents. Learn more about preferential voting and its impact on Australian politics.

Major political parties

Two big groupings dominate: the Australian Labor Party on the centre-left and the Liberal-National Coalition on the centre-right. Minor parties such as the Greens, One Nation and various independents also influence policy, especially in the Senate where proportional representation gives them seats.

Labor: centre-left, supports social programs and workers' rights
Liberal: centre-right, emphasises free enterprise and smaller government
The Nationals: conservative party representing regional areas
Greens: progressive party focused on environment and social justice
One Nation: right-wing populist party focused on immigration and national sovereignty
Independents: increasingly influential, especially on climate policy and integrity issues

For a deeper understanding of each party's values and history, see our detailed guide to Australian political parties.

How policy becomes law

Policy ideas are developed by ministers, party rooms, parliamentary committees and interest groups. A proposed law (bill) must pass both houses of parliament and receive the Governor-General's assent. Senate committees scrutinise bills, while the High Court can rule on constitutional matters.

The typical pathway for legislation includes:

First reading – formal introduction of the bill
Second reading – debate on the general principles
Committee stage – detailed examination, possibly with amendments
Third reading – final vote
Passage through the other house (repeating steps 1-4)
Royal assent from the Governor-General

Bills that fail to pass the Senate can become "double dissolution triggers" if rejected twice, potentially leading to a full election of both houses.

Left vs Right in Australia

While international observers often describe Australian politics as moderate, ideological debates still shape policy. Economic conservatives favour free markets and lower taxes, whereas progressives advocate for stronger public services and regulation. Social issues such as climate action and equality often divide parties along similar lines.

To understand the Australian political spectrum in more detail, explore our guides to left-wing politics and right-wing politics in the Australian context.

A brief history of Australian politics

Australia's party system emerged in the early twentieth century as the labour movement organised against more conservative and rural interests. This split eventually solidified into the Labor Party on the centre‑left and the Liberal‑National Coalition on the centre‑right.

Minor parties have come and gone, but since the 1990s groups like the Greens and One Nation have held seats in parliament—particularly in the Senate—giving them leverage on issues from industrial relations to climate policy.

Key political developments in Australian history include:

Federation in 1901, uniting the six colonies
Women gaining the federal vote in 1902 (among the first in the world)
The "Dismissal" constitutional crisis of 1975
Economic reforms and financial deregulation of the 1980s
The rise of minor parties since the 1990s
Increasing policy focus on climate change and Indigenous reconciliation

Key political institutions

Beyond Parliament, several institutions play crucial roles in Australian governance:

Governor-General: the monarch's representative who formally appoints the government and gives royal assent to laws
High Court: the final court of appeal and interpreter of the Constitution
Reserve Bank: manages monetary policy independently of the government
Australian Public Service: the professional civil service that implements policy
Australian Electoral Commission: manages elections and electoral boundaries

These institutions provide checks and balances on government power and help maintain political stability through changes of government.

Media and political discourse

Australia's media landscape plays a significant role in political discussion. Major outlets include:

Public broadcasters: ABC and SBS
News Corp outlets: The Australian, Daily Telegraph, Herald Sun
Nine Entertainment: The Sydney Morning Herald, The Age
Digital media: The Guardian Australia, Crikey, The Conversation

Media ownership is relatively concentrated compared to some countries, with News Corp Australia and Nine Entertainment holding significant market share. For more information, see our guide to Australian political news sources.

Current political issues

Some of the major issues driving Australian political debate in 2025 include:

Climate change policy and energy transition
Cost of living and economic management
Housing affordability
Health system capacity and funding
Indigenous Voice to Parliament
Relations with China and the Indo-Pacific region

These issues reflect Australia's position as a developed economy facing challenges of climate adaptation, demographic change, and geopolitical shifts in its region.

Getting involved

Australians can join a party, volunteer during elections or contact their MP to influence decisions. For practical tips see our guide on how to contact your local MP.

Other ways to participate include:

Joining community advocacy groups
Attending town halls and community consultations
Following and engaging with MPs on social media
Making submissions to parliamentary committees
Running as a candidate in local, state or federal elections

Active engagement by citizens is vital to a healthy democracy, ensuring that representatives remain accountable to their constituents.