How many levels of government operate in Australia?

Three levels of government operate in Australia: federal (or Commonwealth), state (and territory), and local. Each level has its own elected legislature, its own taxing and spending powers, and its own areas of responsibility, established under the Australian Constitution and state and territory constitutions.

The federal government, based in Canberra, is responsible for matters of national concern. Its main areas include defence, foreign affairs and trade, immigration and citizenship, currency and banking, taxation, Medicare and the Pharmaceutical Benefits Scheme, social security, telecommunications, postal services, ABC and SBS broadcasting, and interstate commerce. Its powers are set out in section 51 of the Constitution and have grown over time through High Court interpretation of specific heads of power.

State and territory governments handle most areas of daily life. Six states (New South Wales, Victoria, Queensland, South Australia, Western Australia, and Tasmania) and two self-governing internal territories (the Australian Capital Territory and the Northern Territory) operate parliaments and executives. State responsibilities include schools, public hospitals, police, courts, prisons, state roads, public transport, water and electricity delivery, planning, and many other core services. State and territory governments are also responsible for Aboriginal heritage protection, national parks and conservation, and most environmental regulation.

Local governments are the third tier. About 537 local councils across Australia operate under state-based local government legislation, each delivering local services such as roads, footpaths, stormwater drains, parks, public libraries, swimming pools, sporting facilities, kerbside waste collection, building approvals, and town planning. Local councils raise revenue mainly through rates levied on local property. Some areas (such as the Australian Capital Territory) operate with only two tiers (federal and territorial), since the ACT Legislative Assembly performs both state and local functions. The interaction between the three levels is coordinated through the National Cabinet, ministerial councils, and various federal-state-local agreements.