Citizenship› Part 3› Three Levels of Government
Part 3 · Sub-section 5 of 8

Three Levels of Government

Australia has three levels of government — Federal, State/Territory, and Local. Each level is responsible for different services and is led by different people. Understanding who does what is a common citizenship test topic.

What Each Level Does

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Level 1
Federal (Australian) Government
Leader: Prime Minister
  • Taxation
  • National economic management
  • Immigration & citizenship
  • Defence
  • Social security (pensions, family support)
  • Employment assistance
  • Trade & commerce
  • Airports & air safety
  • Foreign affairs
  • Postal & communications
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Level 2
State & Territory Governments
Leaders: Premier (state) / Chief Minister (territory)
  • Hospitals & health services
  • Schools
  • Roads & railways
  • Police & ambulance services
  • Public transport
  • Forestry
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Level 3
Local Government
Leaders: Mayor / Shire President
  • Local roads, footpaths, bridges
  • Street signs & traffic controls
  • Parks, playgrounds, sports grounds
  • Libraries & community centres
  • Rubbish collection
  • Noise & animal control
  • Building permits
  • Drains & local environment
  • Child-care & aged-care (some)
Overlap: Some responsibilities may overlap between levels. But generally each level provides different services to the community.

State & Territory Government Structure

There are six states and two mainland territories in Australia. Each state government has its own parliament and constitution. State and territory governments are based in their capital cities.

Each state has a Governor who represents the King of Australia. In the Northern Territory, an Administrator is appointed by the Governor-General. States have rights recognised by the Constitution, while territories do not — territory laws can be altered or revoked by the Australian Government at any time.

Local Government

The states and the Northern Territory are divided into local government areas which may be called cities, shires, towns or municipalities. Each area has its own local council.

Citizens in each local government area vote to elect their local councillors. Councils are responsible for planning and delivering services to their local community.

Leaders at Each Level

Level Leader Elected Body
FederalPrime MinisterAustralian Parliament (House of Reps + Senate)
StatePremierState Parliament
TerritoryChief MinisterTerritory Assembly/Parliament
LocalMayor or Shire PresidentLocal Council

Key Points to Remember

Quick Check

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Question 1 of 5
Which level of government is responsible for defence and immigration?
Why it matters: Defence and immigration are federal government responsibilities. The Federal (Australian) Government handles national matters that affect all Australians — including taxation, social security, foreign affairs, trade, and defence.
Question 2 of 5
Which level of government runs hospitals and schools?
Why it matters: Hospitals, health services, schools, roads, police, and public transport are primarily state and territory government responsibilities. This is a common test question — the federal government handles national services, not hospitals or schools directly.
Question 3 of 5
Which level of government is responsible for rubbish collection and local parks?
Why it matters: Local government (councils) handles community-level services like rubbish collection, parks, playgrounds, local roads, libraries, noise control, and building permits. These are everyday local services, not state or federal matters.
Question 4 of 5
What is the leader of a state government called?
Why it matters: The leader of a state government is called the Premier. The leader of a territory government is called the Chief Minister. The Governor represents the King (not the government leader). The Prime Minister leads the federal government.
Question 5 of 5
How many states and mainland territories does Australia have?
Why it matters: Australia has exactly 6 states (NSW, VIC, QLD, WA, SA, TAS) and 2 mainland territories (ACT and NT). This is a key fact — the 6 colonies that federated in 1901 became the 6 states, and territories were created later.

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