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The Commonwealth of Australia came into existence with the federation of the Australian states on 1 January 1901.

The creation of the Commonwealth of Australia would be the first step towards self-government in Australia. The goldrushes had made Australia a wealthy nation, and many were pushing for Australia to be independent of Britain's laws, which simply were not relevant for Australian conditions.

Another reason for federation of the states was to unite Australia's defence. Each individual state's defence force was not strong enough to protect Australia's vast coastline from attack. It therefore made good sense to unite the defence under one command.

A major issue was also trade. Federation would make uniform the different bank laws, taxes and tariffs, making it easier to trade, travel and communicate between states. This was seen in Sir Henry Parkes's Tenterfield Oration. Delivered on 24 October 1889 at Tenterfield, a small but significant town in far norther New South Wales, this speech advocated the Federation of the six Australian colonies. Tenterfield was disadvantaged by the steep tariffs imposed on the transport of goods across the border to Queensland and the closer trade centre of Brisbane. Parkes's promotion of Federation was based on the fact that it would enable free trade across the borders.

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Q: When did the Commonwealth of Australia come into existence and why and how?
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