Australia operates under a three-tier system of government consisting of federal, state/territory, and local levels. Each level has distinct responsibilities and powers designed to ensure effective governance from national policy down to local community services. Understanding how these levels work together is essential for knowing which government to contact for different issues and how democratic representation works in Australia.
Three levels working together — federal, state, and local government
The Three-Tier System
Australia's government operates on three distinct levels, each with specific roles and responsibilities established by the Australian Constitution. This division ensures that governance is both comprehensive and appropriately scaled to different community needs.
Federal Government (Commonwealth)
The federal government, also known as the Commonwealth government, handles matters that affect the entire nation. Based in Canberra, it consists of the Parliament, Prime Minister, and federal departments as outlined by the Department of Prime Minister and Cabinet.
Federal Government Powers
The Constitution grants the federal government exclusive power over certain areas:
Key Federal Responsibilities
The federal government's key responsibilities are divided into economic and financial matters, and national and international affairs. Economically, it manages taxation, currency, banking, interstate and international trade, workplace relations, and corporations law. On the national and international front, it oversees defence, foreign affairs, immigration, quarantine, postal services, telecommunications, and Indigenous affairs.
These exclusive federal powers ensure national consistency and prevent conflicts between states.
Federal Government Services
The federal government provides or funds many services that Australians use regularly. Medicare operates as the universal healthcare system, while Centrelink administers social security and welfare payments to millions of Australians. The Australian Taxation Office handles tax collection and administration, and the Australian Border Force manages immigration and border control. Australia Post provides postal services nationwide, and the federal government funds and regulates universities through higher education policy. Additionally, the Child Care Subsidy program supports early childhood education for Australian families.
Federal Government Structure
The federal government consists of Parliament with the Senate (76 members) and House of Representatives (151 members), the Executive branch including the Prime Minister, Cabinet, and government departments, the Judiciary comprising federal courts including the High Court of Australia, and the Governor-General who serves as the representative of the Crown and head of state.
State and Territory Governments
Australia has six states (NSW, VIC, QLD, WA, SA, TAS) and two territories (ACT, NT). State and territory governments handle matters not specifically given to the federal government, as detailed in our guide to how parliament works.
Australian States
- New South Wales (NSW)
- Victoria (VIC)
- Queensland (QLD)
- Western Australia (WA)
- South Australia (SA)
- Tasmania (TAS)
Australian Territories
- Australian Capital Territory (ACT)
- Northern Territory (NT)
- External territories (e.g., Norfolk Island)
State Government Powers
State governments have "residual powers" - they can make laws about anything not specifically given to the federal government or local councils.
Key State Responsibilities
State governments are responsible for essential services such as public hospitals, primary and secondary education, police and emergency services, public transport, state roads, and public housing. They also regulate planning and development, environmental protection, natural resources, agriculture, fisheries, racing, and gaming, and manage motor vehicle registration.
State Government Structure
Each state government mirrors the federal structure, with a Parliament (most are bicameral, but Queensland is unicameral), a Premier as the head of government, a Governor as the Crown's representative, a Cabinet of senior ministers, and a public service to deliver services.
Local Government (Councils)
Local government, comprising councils and shires, is the level of government closest to communities. There are over 500 local government areas across Australia, each serving local communities under state legislation. The Australian Local Government Association represents these councils nationally.
Types of Local Government
Local councils in Australia are diverse, reflecting their location and population. They include City Councils in large urban areas, Shire Councils in rural and regional areas, Town Councils in smaller urban centers, and Regional Councils that cover large geographic areas with multiple communities.
Local Government Powers and Services
Local councils are created by state governments and have powers delegated to them by state legislation.
Key Local Government Services
Local governments provide essential community infrastructure and services, including waste collection, local roads, footpaths, parks, recreational facilities, public libraries, and public toilets. They also have regulatory responsibilities such as managing development applications, building permits, animal control, and local environmental health, as well as running community events and licensing local businesses.
Local Government Structure
Local councils have a simpler structure than state and federal governments. They consist of elected councillors, a Mayor or Shire President who leads the council, a Chief Executive Officer who manages daily operations, and staff who deliver local services. Key decisions are made at regular public council meetings.
How the Three Levels Work Together
While each level has distinct responsibilities, they often need to cooperate and coordinate on complex issues through mechanisms like the National Cabinet.
Shared Responsibilities
Some areas involve multiple levels of government:
Examples of Shared Responsibilities
Transport
- Federal: Interstate highways, aviation, shipping
- State: Major roads, public transport networks
- Local: Local roads, footpaths, parking
Environment
- Federal: National parks, international agreements
- State: Environmental protection laws, state forests
- Local: Local environmental health, waste management
Housing
- Federal: Housing policy, first home buyer grants
- State: Public housing, rental laws
- Local: Planning approvals, building permits
Funding Relationships
The three levels of government have complex funding relationships. The federal government distributes GST revenue and provides specific purpose grants to states for health and education. State governments, in turn, provide grants to local councils and have regulatory oversight. The Commonwealth Grants Commission allocates federal funding to states based on need, and each level has different taxation powers and revenue streams.
Constitutional Framework
Division of Powers
The Australian Constitution establishes the framework for the division of powers. The federal government has exclusive powers over national matters like defence and currency. Both federal and state governments have concurrent powers in areas like taxation. State governments hold residual powers over anything not specified for the federal government, while local government powers are delegated by states and are not mentioned in the Constitution.
Constitutional Recognition
Importantly, local government is not mentioned in the Australian Constitution - it exists only through state legislation. There have been attempts to constitutionally recognise local government, but these have not been successful.
Elections and Representation
How Each Level is Elected
Election Systems
Federal Elections
House of Representatives (3 years) and Senate (6 years) - compulsory voting, preferential and proportional systems
State Elections
Usually 4-year terms - compulsory voting, similar systems to federal but vary by state
Local Elections
Usually 4-year terms - voting may be compulsory or voluntary depending on state, simpler ballot systems
Representation Numbers
Representation varies dramatically between the levels of government. Each federal MP in the House of Representatives represents approximately 165,000 people. State MPs typically represent between 50,000 and 70,000 people, depending on the state. At the local level, a councillor might represent as few as 500 people in a small rural council or over 80,000 in a large city council.
Which Government is Responsible for What?
Understanding which level of government handles different issues helps you know who to contact for specific problems:
Contact Federal Government For:
Contact the federal government for matters such as Medicare, Centrelink, immigration, tax, aged pensions, child care subsidies, and postal services.
Contact State Government For:
Reach out to your state government for issues related to public hospitals, schools, police, driver's licenses, public transport, major roads, and planning appeals.
Contact Local Council For:
Your local council is responsible for rubbish collection, local roads, building permits, noise complaints, parks, libraries, and animal registration.
Frequently Asked Questions
What are the three levels of government in Australia?
Australia has three levels of government: Federal (Commonwealth) government, State/Territory governments, and Local government (councils). Each level has specific responsibilities and powers under the Australian Constitution, working together to provide services and governance to citizens.
What does the federal government control in Australia?
The federal government controls national matters including defence, foreign affairs, immigration, taxation, Medicare, social security, currency, trade between states, and postal services. It also has responsibility for matters that affect the whole country or require national coordination.
What do state governments do in Australia?
State governments are responsible for health services, education (primary and secondary), police, public transport, roads, housing, planning and environment within their state. They also have residual powers - anything not specifically given to federal or local government.
What services do local councils provide?
Local councils provide services including waste collection, local roads maintenance, parks and recreation facilities, library services, local planning approvals, building permits, animal control, and community services. They focus on day-to-day services that directly affect local communities.
Working Together for Australia
Australia's three-level government system creates a comprehensive framework for democratic governance and service delivery. Each level plays a crucial role: the federal government handles national issues and provides overall economic leadership, state governments deliver essential services like health and education, and local councils take care of community needs and local infrastructure.
This system ensures that decisions are made at the most appropriate level - local issues are handled locally, while national matters are addressed federally. The overlap and cooperation between levels, while sometimes complex, helps ensure that Australians receive comprehensive public services and democratic representation from their neighbourhood to the national level.
Understanding how these three levels work helps you become a more informed citizen, knowing which government to contact for different issues and how your votes in federal, state, and local elections contribute to democratic governance in Australia.
Learn More About Australian Government
Whether you're dealing with a local council about a planning application, accessing state health services, or concerned about federal immigration policy, knowing which level of government is responsible helps you direct your questions and advocacy to the right place. For specific guidance on political engagement, explore our resources on Australia's political parties and constitutional change through referendums.