Federal vs state — who does what?

Australia is a federation: powers are split between the federal (Commonwealth) government and the 6 states + 2 territories.

Federal government handles

• Defence, foreign affairs, immigration
• Medicare, PBS, aged care, NDIS
• Age pension, JobSeeker, family payments
• Higher education, universities
• Tax (income, company, GST), currency
• Australia Post, airports, national highways

States & territories handle

• Public schools (K–12)
• Public hospitals (federally funded, state run)
• Police, courts, prisons
• Roads, public transport, driver licensing
• Water, electricity distribution, planning laws
• Ambulance, fire, emergency services

Local councils handle

• Rubbish and recycling
• Parks, libraries, community centres
• Building approvals, local roads and footpaths
• Dog registration, food business licensing

When they overlap

Hospitals and schools are the classic example: the Commonwealth transfers billions to states each year through National Agreements, but the states run the day-to-day operations. Blame — and credit — is often shared.

Sources: Australian Constitution ss.51 & 52, Council on Federal Financial Relations.