Question: what is meant by australia having a federal system of government

title: Government of Australia
text: The federal nature of the Commonwealth and the structure of the Parliament of Australia were the subject of protracted negotiations among the colonies during the drafting of the Constitution . The House of Representatives is elected on a basis that reflects the differing populations of the States . Thus New South Wales has 48 members while Tasmania has only five . But the Senate is elected on a basis of equality among the States : all States elect 12 Senators , regardless of population . This was intended to allow the Senators of the smaller States to form a majority and thus be able to amend or reject bills originating in the House of Representatives . The ACT and the NT each elect two Senators .