The government is divided into three levels: Federal, State and Local. The Federal government is the national system and is headed by the Prime Minister. Its responsibilities are defined in the Australian Constitution.

Each state/territory also has its own government system, headed by the Premier. The state government provides leadership for areas not covered at the federal level, although the two work together when it is agreed there needs to be national co-operation.

Apart from the Australian Capital Territory, which is wholly governed by the federal and state governments, each other state and territory is divided into different regions, which form the local government. This level takes care of domestic issues in each area, such as rubbish collection, public and community services.