It is useful to have a working knowledge of the political structures in Australia as they will affect your new business in Australia.
The Commonwealth of Australia is a federal constitutional monarchy under a parliamentary democracy. The monarchy aspect relates to the Queen of Britan. The title Queen of Australia is held by the Queen of Britain (currently Queen Elizabeth II). The position stems out from the time when Australia was still under the control of the United Kingdom.
The Commonwealth of Australia was formed in 1901 as a result of an agreement among six self-governing British colonies, which became the six states. The terms of this agreement are embodied in the Australian Constitution, which was drawn up at a Constitutional Convention and ratified by the people of the colonies at referenda.
The Queen is represented in the country by the Governor-General, which the Queen elects. Both the Queen and the Governor General exercise executive duties over the affairs of the state.
The Governor General appoints ministers in the various departments of Australia’s executive branch, which includes transport, defense, and health. The ministers must be members of either the House of Representatives or the Senate to be appointed. From here, the Governor-General then appoints a prime minister. It is interesting to note that, while the prime minister is technically only the third one in the chain of command, he is considered the most powerful man in Australian politics. This is because he is the one that advices both the Governor General and the Queen in making executive decisions.
Not all the powers are under the control of the executive council (as the above positions are collectively called). Legislative power is vested on to the Australian parliament. The parliament is made up of two branches. The upper house is composed of the Queen and a 76-man senate. Twelve senators are elected from each state with four additional ones voted to serve as the representatives of the other teritorries. On the other hand, the lower house is composed of 150 members, which are elected by an electoral council that represent each state.
Since Australia is a federation, the above body is mainly concerned with national policies. On the other hand, each of the six states and other territories govern their internal affairs independent of the national parliament and each other. Each has its own executive and legislative branch. Representatives for the positions are elected by the people living in the state.
