Australian Government System and Law: Complete Guide for the Citizenship Test

The Australian government system is a constitutional monarchy with a parliamentary democracy, where power is divided between three levels of government and three separate branches. Australia's system and Australia's system of government include parliamentary democracy, constitutional monarchy, and federalism as key features. The Australian system of government is influenced by the Westminster system.

This topic appears throughout the “Australian Citizenship: Our Common Bond” booklet and forms a significant part of the test. Many candidates find it challenging because questions focus on how different parts of the system connect and work together.

Why Government and Law Questions Matter

Government and law questions test your understanding of Australia’s system of government. You need to know who does what, which level of government is responsible for different services, and how the branches of government keep each other in check.

Many test-takers struggle with this section for three main reasons. First, they confuse the three levels of government (federal, state, local) with the three branches of government (Parliament, Executive, Judiciary). Second, similar-sounding roles cause mix-ups—for example, the difference between the Governor-General and a state Governor. Third, the official booklet introduces many new terms that can feel overwhelming.

Think of Australia’s government like a large organisation with different layers (levels) and different departments doing different jobs (branches). Each layer has its own responsibilities, and each department has a specific role to play.

In this guide, you will learn:

• The three levels of government and what each one does

• The three branches of government and how they share power

• How laws are made in Australia, step by step

• Important roles like the Governor-General and Prime Minister

• Common mistakes to avoid on test questions

• Practical study strategies using charts, acronyms, and matching games

Ready to test your knowledge? After reading this guide, practise with government and law questions on our dedicated practice test page.

Three Levels of Government in Australia

A “level of government” refers to where decisions are made and who makes them. Australia has three levels: the federal government (also called the Australian Government or Commonwealth Government), state and territory governments, and local government (councils). The government Australia operates through these three levels, each with distinct roles and responsibilities within the executive, legislative, and judicial branches, all under the country's constitutional framework.

All three levels are elected by the people through regular elections. Each level must follow the Australian Constitution and the law. This structure is called a federation, where power is shared between the national government and the states. Australia is a representative democracy in which it is compulsory for all Australians over 18 years of age to enrol and vote for people to represent them, and voting in Australia is compulsory.

The Australian Parliament was established in 1901 when six British colonies united to form the Commonwealth of Australia.

The “Government and the law in Australia” chapter of Our Common Bond explains this system in detail. Understanding which level handles which responsibilities is a major part of the citizenship test.

Federal Government (Australian Government / Commonwealth)

The federal government looks after national matters that affect the whole of Australia. It is based in Canberra, in the Australian Capital Territory, at Parliament House.

The federal government is also called the Commonwealth Government or the Australian Government. Voters across the country elect members to the Australian Parliament in national elections held approximately every three years.

Key federal responsibilities include:

• Defence and the Australian Defence Force

• Immigration and citizenship (including the citizenship test)

• Customs and border protection

• Foreign affairs and relations with other countries

• Trade and national economic policy

• Medicare funding and some social services

• Telecommunications and national transport safety

In everyday life, you interact with federal responsibilities when you use a passport to travel overseas or watch news about federal elections. The federal government raises most of its money from national taxes, such as income tax and company tax.

State and Territory Governments

State and territory governments, also known as state government, look after matters within their own state or territory. Australia has six states and two self-governing territories.

The six states are:

• New South Wales

• Victoria

• Queensland

• Western Australia

• South Australia

• Tasmania

The two mainland territories are:

• Australian Capital Territory

• Northern Territory

Each state has its own constitution and parliament. The Australian Capital Territory and Northern Territory have their own legislative assemblies. Most state parliaments have two houses, though Queensland has only one (a legislative assembly without a legislative council).

State and territory elections are conducted by other electoral management bodies in accordance with separate legislation.

Key state and territory responsibilities include:

• Hospitals, health services and ambulance services

• Public schools, TAFE and most universities

• Police, prisons and courts for most criminal matters

• Main roads, public transport and vehicle registration

• State parks and some environmental protection

• Consumer protection and fair trading

Each state is led by a Premier, while territories are led by a Chief Minister. The King is represented in each state by a Governor, and in the Northern Territory by an Administrator.

You interact with state services when you go to a public hospital, send children to a state school, or renew your driver’s licence.

Local Government (Councils)

Local government consists of councils that look after local areas such as cities, towns and shires. State and territory governments create local councils, and their powers come from state or territory laws.

Key local government responsibilities include:

• Rubbish and recycling collection

• Local roads, footpaths and street lighting

• Local planning and building approvals

• Parks, playgrounds and sports grounds

• Local libraries and community centres

• Some local health services, such as food safety inspections

Councillors are elected by local residents. Councils are usually led by a Mayor or Shire President. A shire council serves rural areas, while city councils serve urban areas.

You interact with local government when you pay council rates, visit your local library, or use a local swimming pool.

Comparison Table: Responsibilities at Each Level

This table helps you quickly compare what each level of government does. Understanding these differences is often tested in multiple-choice questions.

Note: Some services involve shared responsibilities. For example, health receives federal funding through Medicare, but states run hospitals. Always identify the level with primary responsibility.

Three Branches of Government

The separation of powers means that government power is divided among three branches. This prevents any single group from having too much control. The three branches are Parliament, the Executive, and the Judiciary.

This is different from the three levels of government. Levels are about where government operates (national, state, local). Branches are about what type of work government does (making laws, implementing laws, interpreting laws).

Think of it this way: the branches are like different jobs in a workplace—one team writes the rules, another team carries them out, and a third team decides what the rules mean when there is a disagreement.

All three branches are described in the Australian Constitution. The citizenship test often asks about their different roles.

Remember: Levels are vertical (federal at the top, local at the bottom). Branches are horizontal (different jobs working side by side).

Parliament: The Law-Making Branch

Parliament makes and changes federal laws. The Australian Parliament is made up of the King (represented by the Governor-General), the Senate, and the House of Representatives.

The House of Representatives:

• Has more than 140 members, each representing one local area called an electorate

• Is known as the “people’s house” because representatives are chosen directly by voters

• Is where most government bills (proposed laws) are introduced first

Representatives practice their duties through legislative activities, constituency work, and participation in parliamentary procedures.

The Senate:

• Has 76 senators—12 from each state and 2 from each territory

• Is called the “states’ house” because each state has equal representation

• Each senator represents the whole state or territory in the federal parliament

• Acts as a “house of review” to check laws passed by the House of Representatives

Both houses meet at Parliament House in Canberra. Parliament also approves the federal budget, debates important national issues, and checks the work of the executive government through question time and parliamentary committees.

This system with two houses is called a bicameral parliament. It ensures that proposed laws are carefully examined before becoming law.

The Executive: Putting Laws into Action

The Executive is the branch that puts federal laws into action and runs day-to-day government. It is also called the executive government.

Formal structure:

• Executive power is formally held by the King and exercised on his behalf by the Governor-General

• The Federal Executive Council gives legal effect to many government decisions

• The current monarch is His Majesty King Charles III

How it works in practice:

• The Prime Minister leads the government

• Cabinet consists of the Prime Minister and senior ministers who make major policy decisions

• Government departments and public servants carry out these decisions

Ministers are responsible for specific areas, such as health, education, or defence. They are supported by assistant ministers and parliamentary secretaries. Only ministers can be members of Cabinet.

When the government announces a change to Medicare rules or a new tax policy, it is the Executive—through its departments—that puts these changes into practice.

The Judiciary: Independent Courts

The Judiciary is the branch that interprets and applies the law in individual cases. Courts must be independent from Parliament and the Executive to ensure fair decisions.

The High Court of Australia:

• Is Australia’s highest court—the top of the court system

• Interprets the Australian Constitution

• Decides whether federal and state laws follow the Constitution

• Settles disputes between the federal and state governments

• Hears final appeals from other federal courts and state courts in important cases

Judges are appointed to protect their independence. They can only be removed in very serious situations. The High Court’s decisions are final—there is no higher court in Australia.

The Judiciary protects the rule of law and ensures that the separation of powers works properly. This is an important role in Australian democracy.

Branches of Government: Functions Table

This table summarises the three branches and their main roles. Understanding these differences is essential for the citizenship test.

How the branches interact: Parliament passes a law, the Executive enforces it through departments, and the Judiciary can review it if someone challenges the law in court. This system of checks and balances is central to Australia’s system of government.

How Laws Are Made in Australia

Federal laws are made by the Australian Parliament following a clear process. The “Australian Citizenship: Our Common Bond” booklet explains this journey from idea to law.

This section describes how a bill becomes an Act of Parliament. The citizenship test may ask about the key steps or who is involved at each stage.

Step-by-Step: From Idea to Act of Parliament

Step 1 – Idea for a new law or change

Ideas for laws can come from government policy, parliamentary committees, court decisions, or community concerns. The government decides which ideas to develop into proposed laws.

Step 2 – Drafting a bill

A “bill” is a proposal for a new law or a change to an existing law. Expert lawyers in the Office of Parliamentary Counsel prepare the exact wording. Bills are carefully written to be clear and legally effective.

Step 3 – First reading

The bill is introduced in either the House of Representatives or the Senate. Usually, government bills start in the House of Representatives. The title is read out, copies are given to members, and there is normally no debate at this stage.

Step 4 – Second reading and debate

A minister or member explains the purpose of the bill. Members then debate whether the bill is a good idea in principle. This is when the main arguments for and against are presented.

Step 5 – Consideration in detail (committee stage)

Members discuss the bill section by section. They can suggest changes called amendments. This detailed examination helps improve the proposed law.

Step 6 – Third reading and vote

The final version of the bill is debated briefly. Members then vote. If the majority agrees, the bill passes that house and moves to the next stage.

Step 7 – Same process in the other house

The bill is sent to the other house (Senate or House of Representatives). It goes through the same readings, debates, and committee stages.

Step 8 – Agreement of both houses

Both houses must agree on the same text of the bill. If they disagree, the bill can be changed and sent back, or negotiations take place to find agreement.

Step 9 – Royal assent

Once both houses agree, the Governor-General signs the bill on behalf of the King. This is called royal assent. After royal assent, the bill becomes an Act of Parliament—a law.

Step 10 – The law comes into effect

Some laws start immediately after royal assent. Others begin on a set date. The Executive and public service then put the law into action.

Visualising the Law-Making Process

Here is a simplified view of how a bill becomes law:

1. Idea → A problem or need is identified

2. Bill drafted → Lawyers write the proposed law

3. First house → Bill introduced, debated, voted on

4. Second house → Same process repeated

5. Both houses agree → Final text approved

6. Royal assent → Governor-General signs

7. Law begins → Executive implements it

For example, imagine Parliament wants to improve road safety. A minister introduces a bill requiring new safety standards. Both houses debate and pass the bill. The Governor-General gives royal assent. The Department of Transport then enforces the new standards across Australia.

Key Institutions and Roles in the Australian Government System

Several institutions and roles appear repeatedly in Our Common Bond and often feature in test questions. Understanding these is essential for the citizenship test. The Parliamentary Education Office is a valuable resource for learning about parliamentary processes, democracy, and the structure of the Australian government.

The Governor-General represents Australia's head of state and performs ceremonial duties on behalf of the monarch, reflecting the country's constitutional monarchy system.

The Australian Coat of Arms, also known as the Australian coat, is a national symbol of identity and authority. It is used on official documents and government insignia to signify national unity.

The Australian Constitution

The Australian Constitution is the highest law in Australia that sets out how the country is governed.

What the Constitution does:

• Creates the federal Parliament, Executive, and the High Court

• Divides certain powers between the federal government and the states

• Sets basic rules for elections and how the Constitution can be changed

The Constitution came into effect on 1 January 1901, when the six colonies became states in the new Commonwealth of Australia. This event is called federation.

The Constitution can only be changed by a national vote called a referendum. The Australian people must approve any changes. This protects the basic structure of Australia’s representative democracy.

The Governor-General

The Governor-General is the King’s representative in Australia. Currently, the monarch is His Majesty King Charles III.

The Governor-General’s role includes:

• Performing ceremonial duties, such as opening Parliament

• Giving royal assent to laws passed by Parliament

• Formally appointing the Prime Minister and ministers after elections

• Acting on the advice of the Prime Minister and ministers in almost all situations

• Representing Australia’s head of state at important role events

The Governor-General has reserve powers that can be used in special constitutional situations. However, these are rarely used and are beyond what the citizenship test requires.

The Prime Minister and Cabinet

The Prime Minister is the head of the Australian Government and leads the executive government.

How the Prime Minister is chosen:

• Usually the leader of the political party (or coalition of parties) with a majority in the House of Representatives

• Formally appointed by the Governor-General after an election

The Prime Minister’s main roles:

• Leads the current government and chairs Cabinet meetings

• Chooses ministers and allocates their portfolios (areas of responsibility)

• Represents Australia at major national and international meetings

Cabinet consists of the Prime Minister and senior ministers. They meet regularly to make key government decisions. Each minister is responsible for specific areas—such as health, education, or defence—and is supported by their government departments and assistant ministers.

The High Court of Australia

The High Court of Australia is Australia’s highest court and sits at the top of the court system.

The High Court’s main functions:

• Interprets the Australian Constitution

• Decides whether federal and state laws follow the Constitution

• Hears final appeals from other courts in important cases

• Settles disputes between the federal government and state governments

The High Court’s decisions are final. There is no higher court to appeal to in Australia. Its rulings help define how legislative power and executive power are shared across the Australian system.

The High Court protects the rule of law and ensures that the separation of powers is maintained. These principles are highlighted throughout the Our Common Bond booklet.

Common Mistakes on Government and Law Questions

Many people fail questions not because they did not study, but because they mix up similar ideas. This section identifies common problem areas to help you avoid these mistakes.

Mixing Up Levels and Branches

Many learners confuse levels with branches:

Memory tip: Think of levels as vertical—stacked from top (federal) to bottom (local). Think of branches as horizontal—different jobs working side by side at the same level.

Confusing Responsibilities

Test-takers often place responsibilities at the wrong level. Here are common mistakes:

• Immigration and citizenship → Federal (not state)

• Hospitals and public schools → State/Territory (not federal or local)

• Rubbish collection → Local (not federal)

• Local parks and playgrounds → Local (not state)

• Defence → Federal (not state)

Go through the responsibilities table earlier in this guide. For each service, ask yourself: which level is responsible? Check your answer against the table.

Not Understanding Key Terms

Several important terms cause confusion:

• Constitution: The highest law in Australia that sets out how the country is governed.

• Bill: A proposal for a new law being considered by Parliament.

• Act: A law that has been passed by Parliament and received royal assent.

• Royal assent: The Governor-General’s formal approval that turns a bill into law.

• Governor-General: The King’s representative in Australia who performs ceremonial duties and gives royal assent.

• Prime Minister: The head of the Australian Government who leads the Executive.

• Referendum: A national vote to change the Constitution.

• Election: A vote to choose representatives for Parliament.

Make sure you can explain each term in your own words.

Memorising Without Understanding Connections

Some candidates memorise lists without seeing how ideas connect. This makes it hard to answer questions that ask:

• Who does what? (For example, who gives royal assent?)

• Which body belongs to which branch or level?

• Which step comes first or last in the law-making process?

Tips for understanding connections:

• Draw arrows between levels and their responsibilities

• Link branches to their main bodies (Parliament → House of Representatives and Senate)

• Trace the path of a bill from idea to royal assent

Understanding relationships helps you answer questions even if the wording is slightly different from what you memorised.

Study Strategy for Government and Law

Finding this topic difficult is completely normal. The Australian government system has many parts that connect in different ways. Good study strategies can make it much easier to understand and remember.

These methods are designed for visual learners and people with intermediate English. They focus on building genuine understanding, not just memorising words.

Before you begin:

• Read the government and law chapters in “Australian Citizenship: Our Common Bond” carefully

• Use this guide as a support while revising

• Practise with government and law questions on our online practice test

Use Charts and Tables

Redraw the tables from this article in your own notebook:

• The table showing three levels of government and their responsibilities

• The table showing three branches and their functions

Use colours or symbols to make your charts more visual:

• One colour for federal

• Another colour for state

• A third colour for local

Copying and rebuilding these charts from memory moves information into long-term memory. Try drawing them without looking, then check your accuracy.

Create Simple Acronyms and Memory Hooks

An acronym uses the first letters of words to create a memorable pattern.

For the three branches: “PEJ” (Parliament, Executive, Judiciary)

• Remember: “Parliament Explains Justice” or create your own phrase

For the three levels: “FSL” (Federal, State, Local)

• Remember: “From State to Local” or “Federal Services Locally”

Create your own acronyms that make sense to you. If it helps, use words from your first language to build memory hooks.

Matching Games and Flashcards

Create a simple study game:

1. Write responsibilities on one set of cards (defence, rubbish collection, hospitals, royal assent)

2. Write levels or branches on another set (federal, state, local, Parliament, Executive, Judiciary)

3. Practise matching them and check your answers against this guide

Use paper flashcards or mobile apps to practise key terms like:

• Constitution

• Governor-General

• Prime Minister

• High Court

Say your answers aloud. This helps with both understanding and speaking confidence.

Study in Short, Regular Sessions

Study for 20–30 minutes at a time, focusing on one topic per session:

• Day 1: Three levels of government

• Day 2: Three branches of government

• Day 3: How laws are made

• Day 4: Key institutions and roles

Weekly plan suggestion:

• Early week: Read and build your charts

• Mid-week: Rewrite from memory and explain concepts to a friend or family member

• End of week: Do practice questions and review your mistakes

Always compare what you learn with the official Our Common Bond booklet and information from the Department of Home Affairs.

Summary: Building Confidence for the Test

Here are the main ideas from this guide:

• Three levels of government: Federal handles national matters (defence, immigration, foreign affairs). State and territory governments handle regional services (hospitals, schools, police). Local councils handle community services (rubbish, local roads, parks).

• Three branches of government: Parliament makes laws. The Executive puts laws into action. The Judiciary interprets and applies laws in court cases.

• How laws are made: Bills are introduced, debated in both houses, agreed upon, and receive royal assent from the Governor-General to become Acts.

• Key institutions: The Australian Constitution is the highest law. The Governor-General represents the King. The Prime Minister leads the government. The High Court is the final court of appeal.

Understanding how these parts connect will help you in the test and as a future Australian citizen. Focus on relationships and systems, not just isolated facts.

Review this guide alongside “Australian Citizenship: Our Common Bond” and keep practising government and law questions regularly. With consistent effort, you will build the confidence you need to succeed.