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States developed in Australia out of the original colonies that were established when different areas of Australia were settled at different times. Colonies developed first at Sydney, followed by Newcastle (still part of New South Wales), then further in the south at Van Diemen's Land (Hobart, in Tasmania), north in Brisbane (Moreton Bay), in the west at Perth, and finally south at Melbourne and Adelaide. On 1 January 1901, they federated as one nation.

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Australia was not actually split into states and territories. The states developed out of the original colonies as they were established.

New South Wales was the first colony to be established. More colonies were established north, south and west as Great Britain sought to secure every part of the continent for its empire, and to keep it out of French hands. The colonies were administered by different Governors, and as they grew, they established their own laws and trade rules.

The colony at Port Jackson remained under the name of New South Wales. Van Diemen's Land (later Tasmania) established itself as a colony independent of New South Wales within a few decades of being settled as, being an island, this was logical. Colonies were established in the west (Western Australia) and the south (South Australia) to offset French interests. The explorations of Charles Sturt also had a great deal to do with the establishment of South Australia. When the goldrush increased the wealth of the colony established at Melbourne, there was a push for the southern colony to also break away from New South Wales: hence, Victoria was born. Soon after this, Queensland followed. These colonies all became states of Australia at Federation on 1 January 1901.

As for the territories: the Northern Territory remained part of New South Wales well into the latter half of the 1800s, but was then allocated to South Australia following John McDouall Stuart's successful expedition to the north, paving the way for the Overland Telegraph Line to be built between Adelaide and Port Essington. It became the Northern Territory around the same time as the Federal Capital Territory (later renamed the Australian Capital Territory) was established to become the home of Canberra, Australia's seat of power.

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Q: Why was Australia Split into states and territories?
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