The Australian Capital Territory (ACT), known as the Federal Capital Territory until 1938, is an internal territory of Australia. Canberra, the capital city of Australia, is situated within the territory, and is the territory's primate city. It is located in southeastern Australian mainland as an enclave surrounded by the state of New South Wales (NSW). Exclaved from NSW after federation as the seat of governmentfor the new nation, the territory hosts parliament house, High Court of Australia and the head offices of many Australian Government agencies.
On 1 January 1901, federation of the colonies of Australia was achieved. Section 125 of the new Australian Constitution provided that land, situated in New South Wales and at least 100 miles (160 km) from Sydney, would be ceded to the new federal government. Following discussion and exploration of various areas within New South Wales, the Seat of Government Act 1908 was passed in 1908 which specified a capital in the Yass-Canberra region. The territory was transferred to the federal government by New South Wales in 1911, two years prior to the capital city being founded and formally named as Canberra in 1913.
While the overwhelming majority of the territory population resides in the city of Canberra in the territory 's north-east, the territory also includes some towns such as Williamsdale, Oaks Estate, Uriarra, Tharwa and Hall. The territory also includes the Namadgi National Park, which comprises the majority of land area of the territory. Despite a common misconception, the Jervis Bay Territory is not part of the ACT, although ACT laws apply in the Jervis Bay Territory.[20] The territory has a relatively dry, continental climate, experiencing warm to hot summers and cool to cold winteThe territory is home to many important institutions of the federal government, national monuments and museums. These include the Parliament of Australia, the High Court of Australia, the Australian Defence Force Academy and the Australian War Memorial. It also hosts the majority of foreign embassies in Australia, as well as regional headquarters of many international organisations, not-for-profit groups, lobbying groups and professional associations. Several major universities also have campuses in the territory, including the Australian National University, the University of Canberra, the University of New South Wales, Charles Sturt University and the Australian Catholic University.
A locally elected legislative assembly has governed the territory since 1988. However, the Commonwealth maintains authority over the territory and may disallow or overturn local laws. The Commonwealth maintains control over the area known as the Parliamentary Triangle through the National Capital Authority. Residents of the territory elect three members of the House of Representatives and, together with residents of the Jervis Bay Territory, elect two senators.
With 453,324 residents, the territory is the second smallest mainland state or territory by population. At the 2016 census, the median weekly income for people in the territory aged over 15 was $998, significantly higher than the national median of $662.[21] The average level of degree qualification in the territory is also higher than the national average. Within the territory, 37.1% of the population hold a bachelor's degree level or above education compared to the national figure of 20%.[21] The territory had the equal fourth highest Human Development Index score (0.976) out of over 1,700 subnational regions in 2022, coming close to a perfect score of 1.