As the name indicates, the Australian Capital Territory is the capital of Australia and it was formed in 1908 for its geographical position.
ACT is located between Sydney and Melbourne and it was created soon after Australia became a unified nation in 1901 when the country’s leaders decided the country required a capital that was free of political domination by existing states.
Because New South Wales and Victoria were pushing to be home of the new nation’s Federal Parliament, a compromise saw the ACT established as a neutral centre located between the major states.
The ACT was established as an administrative territory to house the nation’s new capital, Canberra. Today, Canberra is the headquarters of Australia’s Federal Government and the only city in the state.