On federation day every state and colonies become together as one country.
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On 1 January 1901, federation of the Australian colonies was achieved and the Commonwealth of Australia was proclaimed. Australia's first Governor-General, John Hope, made the proclamation at Centennial Park in Sydney.
Sir Henry Parkes is honoured with his picture on the $5 note because he had a significant influence on the policies and direction of the federation movement (the federation of the colonies), up until Federation was achieved on 1 January 1901.
It was written during the constitutional convention of 1897-1898, passed by the British parliament in 1900 and came into effect on Jan 1st 1901.
On the 1st January 1901, the Colonies of Australia were united in federation to become the states of the Commonwealth of Australia. The ceremoney took place at the kiosk in Sydney's Centenial Park. Also on this day Sir Edmund Barton was sworn in as Australia's first Prime Minister and the Earl of Hopetoun was appointed by Queen Victoria as Australia's first Governer-General
Australia has been a constitutional monarchy since Federation, which occurred on 1 January 1901.