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. The Australian Capital Territory is located in southeastern Australia as an enclave surrounded by the state of New South Wales. The territory was excised from New South Wales in 1911 to serve as the seat of government for the Commonwealth, in accordance with Section 125 of the Australian Constitution. Today, the ACT hosts important institutions, such as the Parliament of Australia and High Court of Australia, as well as the headquarters of many federal departments and agencies.
On 1 January 1901, the self-governing Australian colonies federated to form the Commonwealth of Australia. Section 125 of the Australian Constitution provided that a tract of land, situated in New South Wales and not less than 100 miles (160 km) from Sydney, would be ceded to the new federal government. Following discussion and exploration of various sites within New South Wales, the Seat of Government Act 1908 was passed in 1908, and specified a capital in the Yass-Canberra region. The territory was transferred to the federal government by New South Wales on 1 January 1911, and on 12 March 1913, the city of Canberra was officially proclaimed as the nation’s capital.
Whilst the overwhelming majority of the territory’s population resides in the city of Canberra in the territory's north-east, the territory also includes smaller towns such as Williamsdale, Oaks Estate, Uriarra, Tharwa and Hall. The territory also includes the Namadgi National Park, which comprises the majority of land within the territory. Although a common misconception, the Jervis Bay Territory is not part of the ACT; however, ACT laws apply in the Jervis Bay Territory. The territory has a relatively dry, continental climate, experiencing warm to hot summers and cool to cold winters. Among the states and territories of Australia, the Australian Capital Territory is the only one that is geographically landlocked.
The territory is home to important political and governing institutions, as well as many monuments and museums. These include, but are not limited to, the Parliament of Australia, High Court of Australia, Royal Australian Mint, National Gallery of Australia, National Museum of Australia, National Library of Australia, Royal Military College, 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-profits, 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, together with residents of the Jervis Bay Territory and Norfolk Island, elect three members of the House of Representatives and two senators. While senators who represent Australian states have fixed six-year terms, the terms of territory senators are not fixed, but rather are governed by the opening and dissolution of the House of Representatives.
With 475,600 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. 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 or higher, compared to the national figure of 20%. The ACT also has high standards of living: in 2023, the territory recorded the second-highest subnational Human Development Index (HDI) score of 0.988 out of over 1,700 in the world, just below Zurich.
Indigenous Australians have long inhabited the area. Evidence indicates habitation dating back at least 25,000 years, and it is possible that the area was inhabited for considerably longer. The principal group occupying the region were the Ngunnawal people, with the Ngarigo and Walgalu living immediately to the south, the Wandadian to the east, the Gandangara to the north and the Wiradjuri to the north-west.
Following European settlement, the growth of the new colony of New South Wales led to an increasing demand for arable land. Governor Lachlan Macquarie supported expeditions to open up new lands to the south of Sydney. The 1820s saw further exploration in the Canberra area associated with the construction of a road from Sydney to the Goulburn plains. While working on the project, Charles Throsby learned of a nearby lake and river from the local Indigenous peoples and he accordingly sent Wild to lead a small party to investigate the site. The search was unsuccessful, but they did discover the Yass River, and it is surmised that they would have set foot on part of the future territory.
A second expedition was mounted shortly thereafter, and they became the first Europeans to camp at the Molonglo (Ngambri) and Queanbeyan (Jullergung) Rivers. However, they failed to find the Murrumbidgee River. The issue of the Murrumbidgee was solved in 1821 when Throsby mounted a third expedition and successfully reached the watercourse, on the way providing the first detailed account of the land that now comprises the territory. The last expedition in the region before settlement was undertaken by Allan Cunningham in 1824. He reported that the region was suitable for grazing and the settlement of the Limestone Plains followed immediately thereafter.
The first land grant in the region was made to Joshua John Moore in 1823, and European settlement in the area began in 1824 with the construction of a homestead by his stockmen on what is now the Acton Peninsula. Moore formally purchased the site in 1826 and named the property Canberry or Canberra.
A significant influx of population and economic activity occurred around the 1850s gold rushes. The gold rushes prompted the establishment of communication between Sydney and the region by way of the Cobb & Co coaches, which transported mail and passengers. The first post offices opened in Ginninderra in 1859 and at Lanyon in 1860.
During colonial times, the European communities of Ginninderra, Molonglo and Tuggeranong settled and farmed the surrounding land. The region was also called the Queanbeyan-Yass district, after the two largest towns in the area. The villages of Ginninderra and Tharwa developed to service the local agrarian communities.
During the first 20 years of settlement, there was only limited contact between the settlers and Aboriginal people. Over the succeeding years, the Ngunnawal and other local indigenous people effectively ceased to exist as cohesive and independent communities adhering to their traditional ways of life. Those who had not succumbed to disease and other predations either dispersed to the local settlements or were relocated to more distant Aboriginal reserves set up by the New South Wales government in the latter part of the 19th century.
In 1898, a referendum on a proposed constitution was held in four of the colonies – New South Wales, South Australia, Tasmania, and Victoria. Although the referendum achieved a majority in all four colonies, the New South Wales referendum failed to gain the minimum number of votes needed for the bill to pass. Following this result, a meeting of the four premiers in 1898 heard from George Reid, the Premier of New South Wales, who argued that locating the future capital in New South Wales would be sufficient to ensure the passage of the bill. The 1899 referendum on this revised bill was successful and passed with sufficient numbers. Section 125 of the Australian Constitution thus provided that, following Federation in 1901, land would be ceded freely to the new federal government.