It includes local government authorities and all government departments, agencies and authorities created by, or reporting to, the Commonwealth Parliament and State parliaments. It also includes public trading enterprises such as Australia Post and Telstra. It provides advice and support to the Commonwealth Government and administers, and implements government decisions and programs. State and Territory Governments perform the full range of government functions other than those the Constitution deems the domain of the Commonwealth. Functions mainly include public order, health, education, administration, transport and maintenance of infrastructure.
Local governments govern cities, towns, shires, municipalities and district councils.
The main functions of these governments, with varying degrees of responsibility, are to provide a range of public facilities and social services, regulate social and economic conditions and redistribute incomes. Historically, such public trading enterprises were set up to create new industries, to foster competition to allow governments to influence pricing policy, or meet other economic or social objectives. This decline was not spread evenly between levels of government or across different industry sectors. In addition, changes to government policies on public ownership resulted in the private sector competing with, or taking over, various public sector functions. This occurred, for example, with the Commonwealth Employment Service which served to assist people in finding jobs.