Large transient populations of 'diggers' on gold fields did not provide a solid basis for developing local institutions. Centralised administration from the main ports of the colonies underpinned development of law enforcement, public education, industrial relations institutions, transport systems and hospitals. Local government functions vary, but in general include town planning and supervision of building codes, the construction and maintenance of roads, streets and bridges, water sewerage and drainage systems, public health, waste and sanitary services, and community recreational facilities. Australia is a nation of local sporting clubs and their work with local government in establishing sporting facilities is an important feature of land use. Some local government bodies also operate public business enterprises that provide transport or energy.
Local governments receive funding from federal and State governments and also levy rates.
The public service Australia's administrative tradition originated in the British administration of the colonies. Its federal, State and Territory public services are all career services, in the sense that they recruit permanent officers willing to serve the government of the day whatever its political complexion. In recent decades considerable effort has gone into making the activities of public sector agencies more appropriate, effective and efficient. The federal government is reviewing the basis of public sector employment and seeking to reduce bureaucratic 'red tape' costs imposed on the private sector, particularly small businesses.