Australia is led by John Howard, the Prime Minister. Working with the Prime Minister is the Parliament House. Together the two powers work to make laws, etc. for the nation. Australia is broken down into territories. These territories include New South Wales, Northern Territory, Queensland, South Australia, Tasmania, Victoria, and Western Australia. Each Territory is treated similar to how a state is treated here in the states. They have the power to make their own laws as long as they don't conflict with national laws.