Thank you for your question, Rob.
Australia has three levels of law-making which are sometimes called the three levels of government:
Each level of government has its own responsibilities, although sometimes these responsibilities overlap. On these occasions all three levels can work together on the same project.
An example would be improvements to a state road, where the work is completed by a local council and funded by a grant from the federal government.
Similarly, some local councils operate childcare centres which might receive funding, and be regulated by, both the state and federal governments.
However, it is more common for two levels of government – federal and state or state and local – to work together on projects. The reason for this is that local governments are the responsibility of state governments and are not mentioned in the Australian Constitution. The Constitution does mention both the federal and state levels of government, and how they can work together.
You can find more information about the three levels of government here.