Under Australia’s federal system, power is divided between the federal, or Commonwealth, government, and the six state and two territory governments. Specific areas of legislative power are given to the Commonwealth Government, including:

• taxation 
• defence 
• foreign affairs 
• postal and telecommunications services.

As well as retaining legislative power over all other matters that occur within their borders (including police, hospitals, education, public transport), state and territory governments also promote their economies and encourage foreign investment in their own right.

The six states and the Northern Territory have established one further level of government: local government (also known as local councils), which handles community needs like waste collection, public recreation facilities and town planning.

States	Territories
New South Wales Queensland South Australia Tasmania Victoria WesternAustralia	Australian Capital Territory Northern Territory